Contemporary issues of societal development

Patrícia Kaplánová (ed.)

Novo mesto, 2017

Contemporary issues of societal development

Patricia Kaplanova (ed.)

Reviewers

prof. Boris Bukovec, PhD

prof. Uroš Pinterič, PhD

Publisher: Faculty of Organization Studies in Novo mesto, 2017

Copyright © in whole as for parts belong to the authors and

publisher.

All rights reserved: no part of this publication shall be

reproduced in any form including (but not limited to) copying,

scanning, recording or any other form without written consent

of the author or a person on which author would transfer his

material authors' rights.

Publication is available at www.fos.unm.si in .pdf format.

Contents

CIP - Kataložni zapis o publikaciji

Narodna in univerzitetna knjižnica, Ljubljana

316.42(082)(0.034.2)

CONTEMPORARY issues of societal development [Elektronski vir] /

Patrícia Kaplánová (ed.). - El. knjiga. - Novo mesto : Faculty of Organization

Studies, 2017

Način dostopa (URL): http://www.fos.unm.si

ISBN 978-961-6974-13-4 (pdf)

1. Kaplánová, Patrícia

290030848

Introduction 4-8

A Pilot Study of Examinining the Validity and

Reliability of Research Questionnaires

Thongsay Phongphanit

9-30

From Information Asymmetry to Information

Overload - Technological Society of Consumers

Katarzyna Południak-Gierz

31-47

Sufficiency of Financial Literacy: A Case Study of

University Students in Slovakia

Beáta Gavurová, Eva Huculová, Matúš Kubák

48- 70

Isochimica Factory as a “Paradigmatic Case

Study” of Industrial Relations in the South of

Italy.

Anna D’ascenzio

71-85

The Impact of Research Investments and Other

Indicators on the Regional Economic Development

Petra Szlafkaiová, Erika Liptáková

86-106

Regional Development in Slovenia. Insist or

Change?

Franci Žohar

107-129

Refugees in Europe From Media Accounts to

Psychiatric Trauma

Anca-Olga Andronic, Răzvan-Lucian Andronic

130-137

Theoretical Approaches to Social Identities

Patricia Kaplanova

138-155

Index 156-159

4

Introduction

There is no other popular word in current academic discourse that

a crisis. There are several phenomenons explained by a crisis narrative:

economic crisis, social crisis, migration crisis, crisis of democracy and

politics as such, crisis of structural systems like healthcare, education

and many more. Therefore, the crisis narrative contains several

perspectives on changes identified in contemporary societies. Some

scholars „blame“ a technological progress, social and economic

development, industrialization, virtualization of interpersonal relations,

or overall digitalization of everyday life. Undoubtedly, societies, and

civilization itself, has gone through serious changes in a very short

time. Referring to the economic crisis, gender or social inequalities,

political dealignment, migration flows, ongoing conflicts, poverty and

starvation, or rigid educational systems are just small part of a whole

list of civilization issues. A coping with such transformations and

unsolved problems of societies needs also a development of scientific

approach and its prompt reaction by challenging those processes and

their continuous analysis.

The aim of this book was meant to gather ambitious approaches and

research on contemporary issues. The book is composed of seven

chapters attributing to different perspectives on societal development

like methodology of current trends in scientific research, the impact of

technology of European consumer policies at national level, financial

literacy as a consequence of education policy, post-economic crisis

regional development,. Each author of chapter is trying to

demonstrate her/his scientific view and elaborate the analysis of a

sequence of modern societal progress.

In the first chapter, Thongsay Phongphanit (University of Szeged,

Hungary is demonstrating part of his research on “Teacher

management at teacher training institutes in Laos”. His research

reports on the developmental process of the instrument. It aims to

assess two sets of self-constructed questionnaires by focusing on

detecting and eliminating the erroneous wording and phrases in each

item in case of an inappropriate and incongruent wording between

5

sub-scales and items. This small scale study is examining the validity

and reliability of research instruments. Moreover the analysis found

two sets of instruments gradually satisfying the research purpose and

being statistically appropriate. As the main outcome of his study can

be considered a method suitable to be employed to collect data in the

full-scale study in the future.

The second chapter written by Katarzyna Południak-Gierz (Jagiellonian

University in Krakow, Poland) deals with a reaction of national civil law

to the European Union initiatives to support the information society. In

her study “From information asymmetry to information overload -

technological society of consumers” she examines how a lack of

information, especially problematic in distance transactions, influences

situation of both parties. EU legislator imposes information

obligations on the professionals to grant the weaker party access to

information vital for conclusion of contract. The catalogue of

information duties is detailed, precise and extensive. Yet, human

capability to absorb and process data does not grow at the pace

forced by the technology development. As the outcome consumers,

despite having access to information, are not better informed. Instead

of decreasing information asymmetry, regulation grants an overflow of

information. It creates an illusion of improvement in consumer ’s

situation. As the main outcome of her research is that the failure of

protection by information paradigm is caused by rational factors and

behavioural biases. Moreover, an insight on future of information

duties in consumer law within the Digital Market sphere is given.

The third chapter composed by research team of Beáta Gavurová, Eva

Huculová, and Matúš Kubák (Technical University of Košice, Slovakia)

demonstrates an increasing drop in financial literacy among university

students of economics in Slovakia. Generally, there are selected groups

of people financially literate, the majority of world population does

not have any basic financial knowledge as well as no access to

education. This study is aimed to compare levels of financial literacy of

the selected economic faculties in Slovakia, and to compare levels of

financial literacy between the first year undergraduates and those

6

graduates who are in the final year of their studies. Among several

results the most important confirm a significant gender differences in

level of financial literacy. Consequently, the level of financial literacy

among first year students of Bachelor study was comparable with

students of Master study and do not prove any significant enhancing

of financial skills acquired through the graduation from university

study program at economic faculties. The results of research provide

important information for policy makers who should reflect a quality

of financial education and implement efficient education policies in

Slovakia, as well as for policy maker in other countries.

The fourth chapter written by Anna D’ascenzio (Università Suor Orsola

Benincasa di Napoli, Italy) on topic “Isochimica factory as a

“paradigmatic case study” of industrial relations in the South of Italy”

is dealing with consequences of environmental pollution in Italy. The

study investigates the different political stages of the establishment of

asbestos factory in South Italy specifying anomalies in agreement

employments and their effects on the recruitment of workers.

Isochimica, a small company established in a town of South of Italy in

1982, in order to remove asbestos panels from railway carriages for

commission of Ferrovie dello Stato (Italian National Railway company)

has produced extensive damages in terms of environmental pollution

and public health. Indeed, due to the dispersal of asbestos fibres, a

large part of the workers employed in the factory has contracted

asbestos-related pathologies and is still struggling to claim basic

rights such as early retirement and the recognition of work-related

illness. The main conclusion is that the pollution and pathologies

among workers are cases of industrial experimentation of peripheral

late liberalism.

The fifth chapter from Petra Szlafkaiová and Erika Liptáková (Technical

University of Košice, Slovakia) deals with the issue of economic

development in regions of the Visegrad group countries. The process

of regional development is conducted through the implementation of

regional operation programs such as Cohesion Policy of the European

Union. The aim of this work is to investigate and compare the actual

7

economic development of 35 regions (NUTS 2 level) within the V4 in

order to find out, whether the disparities among regions are enlarging

or getting smaller in time period 2004 to 2014. The main contribution

of the research was to identify the main five indicators of economic

development in the Central European regions. Moreover, the cluster

analysis showed that more developed regions under the regional

policy of the EU have improved in results and outcomes. On the other

hand, those regions which were underdeveloped stayed at the same

level of economic and social progress. To sum up, the European Union

Cohesion Policy, based on this research, does not seem to be efficient

in supporting economic equality and sustainable development among

regions.

The fifth chapter written by Franc Žohar (Ministry of Public

Administration, Slovenia) “Regional Development in Slovenia: Insist of

Change?” shows a strategy of balanced regional development leading

to a widening gap between statistical regions in Slovenia. The majority

of unsuccessful work of regional development agencies is unable to

realize major or regional projects, with a strong role in municipal

localities; the question arises whether it can modify the system of

regional development in Slovenia to improve the functioning of

regional development. The research analysis the system of regional

development in Slovenia and the role of regional development

agencies to improve management capacity and performance of

balanced regional development. On the basis of argumentative critical

review of the operation of Regional Development Agencies and the

results of their operations, the outcome of this research points out

that the strategy of balanced regional development undermines the

functioning of the state as a whole.

The sixth chapter written by Anca-Olga Andronic and Razvan-Lucian

Andronic (Spiru Haret Unversity, Romania) on „Refugees in Europe:

From Media Accounts to Psychiatric Trauma” performs a view on

current migration crisis in Europe from a perspective of social

psychology. The study discusses how the crisis of refugees is

presented in the European media and in Romania, a country that until

8

now has not been included in the “Balkan route” followed by the

masses of migrants. Although, there should be some detachments

reported on refugees, the Romanian media discourse is full of

stereotypes on both the refugees and the reaction of the residents of

the countries transited by them. The research also presents an analysis

of the major trauma suffered by refugees, described as psychiatric

conditions. The chapter concludes that the treatment of mental

disorders is not just about medication and psychotherapy; but also the

cultural dimension and social involvement are essential in reducing

symptoms.

The last chapter composed by Patrícia Kaplánová (Faculty of

Organisation Studies, Slovenia) deals with “Theoretical Approaches to

Social Identities”. The research offers an exhaustive overview of

theoretical approaches to social identities arguing their importance in

modern understanding of societies. The study discusses theoretical

and methodological frameworks of a concept of self as a position of

individual in society. The study considers identities form sociological,

psychological and political point of view. In the cases of civic, political

and national identities, the chapter concludes that social identities are

complex influenced by historical and societal development and are

still developing alongside a change of society itself.

Based on abovementioned brief overview of contents of this book, the

contribution lies on the current importance of topics elaborated in

each chapter. Therefore, the main purpose of each chapter is to

demonstrate a comprehensive examination of challenges in modern

society. In the following pages, a reader can acknowledge these

different perspectives on societal reality and adopt several

explanations of societal development.

Patricia Kaplanova

Editor

9

A PILOT STUDY OF EXAMININING THE VALIDITY AND

RELIABILITY OF RESEARCH QUESTIONNAIRES

Thongsay Phongphanit1

Doctoral School of Educational Sciences, University of Szeged,

Hungary

thongsay@nuol.edu.la; thongsaiphongphanit@yahoo.com

Introduction

The research instrument is the main tasks of the research component

and also became the priority activity that researchers inevitable, a

thousand of publications widely discussed and controversial that

associated to the examining of the well-research instrument designed

in multi-methods in several times to be convergent amongst research

objectives, sub-scale and item.

Refer to Oppenheim, (1992); Warwick & Lininger, (1975) suggested the

words used in questions should be understandable to all respondents,

and the meanings imputed to those words should be as universal as

possible among respondents; Parten, (1950); Young, (1939) question

wordings should avoid bias that would push answers one way or

another; Likert, (1932); Thurstone, (1928) in order to minimize the

impact of the idiosyncrasies of item wordings, it is best to aggregate

answers to a battery of items into a single index and Krosnick (1999)

viewed logically that the items used should be the few most efficient

and effective ones tapping the construct of interest.

However, to maximize and minimize among easily and difficult

1 Thongsay Phongphanit, the lecturer of course of Human resources Management and course of Educational research: theory and practice, A member of research team at the Department of Education administration and Management, Faculty of Education, National University of Laos.

10

wordings and phrases and helps the respondents to the best answers,

it could be examined through the validity and reliability test of the

self-constructed questionnaires. This paper will be overview the

theoretical framework, Piloting study, Methods result, discussion and

conclusion.

Theoretical framework

In the social science research field, questionnaire is one of several

types of the research instrument and also most often used directly

contact with respondents is not possible or necessary. It is probably

the single most widely-used data source in educational research and it

could be estimated that as many as half the research studies

conducted use a questionnaire as a part of the data collection process.

However, this broadly tools usage made some of an unforeseen

circumstance related to anonymous words, terminology, item wording,

phrases, asks about truism, ambiguity and others misunderstanding

that motivated the author to overviews some concepts of the research

questionnaires, validity and reliability test, responsiveness in term of

truism and items.

Why questionnaire?

The mostly of the researchers and scholars preferred to employ the

questionnaires in part of adapted, self-made either the mixed

constructed would highly be a great usefulness and it also can be

designed and used to collect vast quantities of data from a variety of

respondents, large number of audiences in a short period,

comfortable, feel free in selecting of scenarios using a scale of

alternatives and anonymous, It basically seeks the opinions of

individuals in a sample or a population on issues directly related to

the objectives of the research study.

Aina, (2004:348), Siniscalco, & Auriat, (2005:4) viewed that the planner

should also consider whether other means of data collections are

more appropriate. Johnson & Christensen, (2007:162-163) stated they

11

can obtain information about thoughts, feelings, attitudes, beliefs,

values, perceptions, personality and behavioral intentions of research

participants; it can used to collect quantitative, qualitative and mixed

data; Wilkinson & Burmingham, (2003:8) viewed an effective

questionnaire is one that enables the transmission of useful and

accurate information or data from the respondent to the researcher, it

have been centrally used to provide an indication of the make-up of

society for centuries in the form of periodic census surveys and are

often used by large organizations to establish people’s views and

opinions on a wide variety of topics.

(Sinjaru, (2012:71) it is broadly used in realm of scientific researches.

(Likitwattana, 2000:90) offered two kinds of questionnaires as opened

and closed form questionnaires; (Sisaad: 2001:74-75) suggested two

characteristics as open-ended or unstructured questionnaires which is

a question offered the respondents’ self-elicited freely in writing down

answers, for instance, ‘Tell us about your school?; while other type are

‘closed form or structure questionnaires’ offered short-answer: yes/no;

e.g Do you wear the glasses?; (Sinjaru, 2012:72-74) added on ‘closed-

ended question’ in three characteristics are checklist: male/female;

Ranking, by putting number: which fruit do you preferred mostly in

three first? Cherry; apple; mango; pineapple; pear ; walnut; orange.

Rating scale or liker-scale are 3; 5; 7 or 9 levels with ‘rating statement’

such as 1 = very difficult understanding, 2 = difficult; 3 = neutral; 4 =

easy understanding; 5 = very easy understanding, this kind offered the

respondents choose one number which is mostly fit to their current

situation.

Wilkinson & Burmingham, (2003: 10-11) added one more different

above mentioned as typical ‘multiple choice question’ would be which

of the following are important attribute of an employee?: good

timekeeping; well-developed customer relation skills; good numeric

skills; ability to liaise with other department staffs.

12

Principles of Questionnaire Construction

A hundred of publications viewed on the principle and step of

constructed questionnaires in differentially based on the research

field, topics, and aims or objectives, (Sisaad, 2001:77) suggested six

principles: (1) identify aim or objective clearly of what we needs; (2)

make the question match the research objectives; (3) chronology the

questions with the draft’s titles basis; (4) avoids the huge questions

and redundant; (5) minimize of the respondents’ barrier; (6) language

communication should be awareness on wording, sentences and

phrases clearly, easy understand; fit to the respondents’ qualification

background; one problem on each item; avoid the multiple answers;

familiar or local word; do not ask the personal confidential. Johnson,

B & Christensen, (2012:164) offered fifteen principles of questionnaires

construction: (1) Make sure the questionnaire items match your

research objectives; (2) Understand your research participants; (3) Use

natural and familiar language; (4) Write items that are clear, precise,

and relatively short; (5) Do not use "leading" or "loaded" questions; (6)

Avoid double-barreled questions; (7) Avoid double negatives; (8)

Determine whether an open-ended or a closed-ended question is

needed; (9) Use mutually exclusive and exhaustive response categories

for closed-ended questions; (10) Consider the different types of

response categories available for Closed-ended questionnaire items;

(11) Use multiple items to measure abstract constructs; (12) Consider

using multiple methods when measuring abstract constructs; (13) Use

caution if you reverse the wording in some of the items to prevent

response sets in multi-item scales; (14) Develop a questionnaire that is

easy for the participant to use and (15) Always pilot test your

questionnaire in several times if possible.

Sinjaru, (2012: 85) recommended seven principles for questionnaires

construction: (1) study and compiles the relevant theories and

concepts then analyses and synthesis prior to draft the questionnaires

structures; (2) identify and scope structures and items' language

usage; (3) discusses with supervisor (improve more, if disagree); (4)

specific experts check (improve more, if disagree); (5) meet supervisor

13

for piloting or tryout with 20-30 participants out of the main sampled;

(6) analyzing data to see the questionnaires' quality; (7) improve and

completing questionnaires package and offered it to supervisor for

validating basis.

Likitwattana, (2000:103) offered five principles of questionnaires

construction: (1) identify and scope the basic requirement; (2) select

the type of researchers instrument appropriately; (3) draft the structure

and consider wording each items questionnaires; (4) testing the

quality with multi-methods and (5) improving and completing the

package. Soukkhavong, (2010) offered three sections mainly

instruction, respondents' personal data, the main aspect of the

research study, additional opinions at the end of each aspect.

Type of questionnaires measurement

Measuring technique can either indicate directly the value of the

measured quantity or only indicate its equality to a known measure of

the same quantity and its value of the small difference between the

measured quantity and the measure having a value very near to it.

Gay and Airasian, (2005) points out several types of measurement

which depend on the research field, research topic and variables, those

are cognitive test including achievement tests, aptitude test; affective

tests consisted of attitude scales such as Strongly agree to Strongly

disagree, and other five points-likert scale; project tests comprised of

materials in such picture and people's feeling.

Besides, Gay and Airasian, (2005) also proposed measurement scales

to be a reference in wight with the score produced likes normal

variable also called categorical variable, represent the lowest level of

measurement. For identification purpose, the normal variable is often

represented by number, e.g male = 1 and female =2. Ordinal variable

it is not only classified person or objects, they also rank them in term

of the degree to which they possess a characteristic of interest, e.g if

50 people were rank from 1 to 50. Interval variable it has all the

14

characteristics of nominal and ordinal variables, but also have equal

intervals and also used in field of educational research, such as

achievement, aptitude, motivation, and attitude test are treated as

interval variable, for example: that the difference between a score of

30 and a score of 40 is essentially the same as the difference between

a score 50 and a score of 60 and etc…Ratio variables it represents the

highest, most precise, level of measurement. In addition, it has a true

zero point, for example, if ‘no weight' is a meaningful one.

Validity tests

Validity is described as the degree to which a research study measures

what it intends to measure. Hardesty & Bearden (2004) suggested four

types of validity test as internal validity refers to the validity of the

measurement and test itself that focused on face validity, concurrent,

productive and construct validity, whereas external validity refers to

the ability to generalise the findings to the target population which is

comprised of population, setting, task or stimulus, social. Siniscalco

and Auriat, (2005) offered three kinds as content (or face) empirical (or

predictive) and concurrent validity. Gay & Airasian, (2005) added that

validity is the most important characteristic a test or measuring

instrument can possess, and it also crucial in all forms of research and

all types of tests and measures as well as this involving three distinct

approaches to test validity such as content validity, mean to compare

content of the test to the domain being measured, and determined by

expert judgment; criterion-related validity, to observe the correlate

score from one test to the criterion measure either the same or

different; construct validity is the amass convergent, divergent, and

content related evidence to determine that the presumed construct is

what is being measured.

Sinjaru, (2012) viewed educational research consistency is crucial to

make sure that research is validity and reliability and would be

response all research questions, aims and hypothesis as well. Validity

test could be conducted in multi-methods, depends on the field or

area majoring and specific purpose, questioning, hypothezing. One of

15

the most preferred technique of validity test widely used as the Index

of Item of Objective Congruence or IOC, Rovinelli and Hambleton,

(1977) stated on IOC it is a procedure used in test development for

evaluating content validity at the item development stage. The validity

test is aims to assess two sets of self-constructed questionnaires by

focusing on detecting and eliminating the erroneous wording and

phrases in each item in case of an inappropriate and incongruent

wording between sub-scales and items. Other words, it aims to extend

to which the test in what it is supposed to measure and performs. It is

generally measured in degrees as a process; it is also involved collect

and analyzing data to assess the accuracy of an instrument through

the statistical test. Likitwattana, (2010) suggested some methods of

validity test by IOC technique with 3-5 specific experts to check and

assess its validity toward the consistency based on accepting criteria

average to be an instrumentality of research study. The IOC formula

below as the main method to calculate or validity test.

IOC = IOC =

Where: IOC = Index of Item of Objective Congruence

R = index item score rate by specific expert

Ʃ = sum score

N = number of expert

IOC (criteria of average IOC)

Table 1. The quality measure methods

Type of research instrument The characteristic of measurement

Validity Reliability Difficulty Discrimination

Questionnaires - -

Test

Attitude test - -

Interviews - -

Observation - -

Sources: (Gay and Airasian, 2005:151-175); (Likitwattana, 2000:105-116); (Sinjaru,

2012:65-85); (Sisaad, 2001: 94-113).

Based on the principles and component of questionnaires

16

construction that has had above-mentioned, it observed that

questionnaires should be cleared and precise with familiar language,

avoiding bias word, phrases, double-barrelled questions, offer five

Points Likert- scale, so that the researchers take it into the drafted as

the Set A for ‘Teacher management’ which is under the six sub-scales

and Set B for ‘Causal of teacher burnout’ as the main scope of research

study. The questionnaires sample has shown in the above and below

are a part of six sub-scales of the Set A' Teacher Management' that

researcher designed to elicit information with the leader/administrator

at the Teacher Training Institutes in Laos toward their awareness in

functioning responsibility, also at the end of each sub-scale is

provided freely for respondents' opinions in using some appropriate

wordings or other relates for further revising of the item properly.

17

Table 2. Sample of the first draft of questionnaire, (Set A: Teacher

Management)

18

Table 3. Sample of the first draft of questionnaire, (Set B: Causal of

Teacher Burnout)

Besides, the measuring quality of research questionnaire, we need the

criterion of the average mean score to verify the right interpretation of

score produced.

Reliability test

Reliability is the degree to which a test consistency measures whatever

it is measuring, the more reliable a test is, the more confidence we can

have that the scores obtained from the test are essentially the same

scores that would be obtained if the test were read ministered to the

same test takers. Joppe, (2000) stated reliability as the extent to which

19

results are consistent over time and an accurate representation of the

total population under study is referred to as reliability and if the

results of a study can be reproduced under a similar methodology,

then the research instrument is considered to be reliable.

Table 4. Rating and interpreting criteria

Source: (Vigias, (2006); Sijaru, 2012:75); Sisaad, 2001:121) Johnson & Christensen,

(2012)

However, the classical test theory, any score obtained by examining

questionnaires is composed of both the “true” score, which is

unknown, and “error” in the measurement process. The true score is

20

essentially the score that a person would have received if the

measurement were perfectly accurate. Reliability can be thought of as

consistency, there are four general estimators that it may encounter in

reading research:

Inter-Rater/Observer Reliability: The degree to which different

raters/observers give consistent answers or estimates.

Test-Retest Reliability: The consistency of a measure evaluated

over time.

Parallel-Forms Reliability: The reliability of two tests constructed

the same way, from the same content.

Internal Consistency Reliability: The consistency of results across

items, often measured with Cronbach’s Alpha. Cronbach (1951)

points out that the Test the Reliability Coefficient for Internal

Consistency of questionnaires with maximum 10-60 sampled to

see the Alpha-Coefficient as Cronbach’s alpha score is significance

greater at >.75 totally and each item score is significance greater

at > .80 is consider item homogeneity.

In addition, Tungsujarittam (2014) proposed some ideas to evaluate

the test’s reliability, the KR–20 (Kuder Richardson) was used in the

study. The test’s reliability shows accurate measures of the test takers’

proficiency whenever the test is used, with different students and/or

different test takers, Green, (1998). The KR - 20 values between 0-1.

The closer the value is to the whole number 1.00, the greater the test’s

reliability. Conversely, the KR-20 gets close to 0.00, the low consistency

of the test is. Hence, the criteria of the test’s reliability at 0.60 and over

are acceptable.

Table 5. Summary of methods for measuring reliability

Type of Number of Number of Statistical

reliability Testing sessions format procedure

Test-retest 2 1 Correlation coefficient

Equivalent form 1 or 2 2 Correlation coefficient

Internal consistency 1 1 Kuder-Richardson, coefficient-

alpha or correlation coefficient

Inter-scorer 1 1 Correlation coefficient

Source: (Johnson, B & Christensen, L. 2012:138)

21

Piloting

Problem statements

The problems are facing challenges for upcoming of the research

tilted ‘Teacher Management at Teacher Training Institutes in Laos’ it

was rarely full reported in publications on the questionnaire to fit and

adapted it, that’s why author self-constructed and need to examine of

its validity and reliability and determine the proper wording and

phrase in each item. The main issues in self-made questionnaire is

concerned on the wording, phrases which is frequently encountered

among respondents. Besides, thousands of empirical studies provide

undefined in detail and surprisingly unanimous advice on the issues.

Questions

In order to arrive the aim of this study, it would be to ask the following

question that what does wording and phrases in the questionnaires

sets needed to be omitted?; Is there statistically significant in reliability

test? and which wording and phrase do the respondents reject

frequently?

Aims of pilot study

This pilot study is aims to assess two sets of self-constructed

questionnaires by focusing on detecting and eliminating the

erroneous wording and phrases in each item in case of an

inappropriate and incongruent wording among item question, sub-

scales and research objectives.

Methods

Participants: this small-scale study is a part of my full-scale research

study titled ‘Teacher Management at Teacher Training Institutes in

Laos’. Thus, the participants were five specific experts and 20 academic

staff in the department of personnel and organization, Ministry of

Education and Sports and five senior teachers and 20 teaching staff in

the Faculty of Education, Souphanouvong University with 50 totally

22

and these were asked to checked and assessed the questionnaire set A

Teacher Management and set B Cause of teacher burnout respectively.

The data collection took place in Laos by personally during July-

August 2016.

Instrument: There are two sets of self-constructed questionnaires, the

set ‘A” for teacher management, consisted of six sub-scales with 63

items totally, break down as job analysis (9 items); recruitment and

selection (9items); pre-service training (9items); performance appraisal

(11items); compensation (18items); training needs assessment(7items).

The set ‘B’ for ‘Cause of teacher burnout’ comprised of three sub-

scales with 25 items totally as Teaching loaded (8items); teacher

compensation (10 items) and Teaching career development (7items)

Data analysis and statistical applications: author cleaning,

encoding data and analyze through SPSS by using basic and inference

statistics and present output on the tabulate with explanation and

interpretations based on the criteria of the average mean scores has

had mentioned in the theoretical framework.

Results

Result 1. Regarding to the personal data

Table 6 (seep appendics) Shows the frequency and percentage of the

respondents’ distribution, the analyzed, the finding there was more

females (53.75%) and mostly possessed the master degree (56.25%)

and they have been working experiences more than 16 years (42.5)

and it was wonderful that only two out of 50 participants possessed

Ph.D level.

Result 2. Relate to the questionnaires set 'A' & B of the validity

and reliability test.

This study is part of a study of ‘Teacher management at teacher

training institutes in Laos’ in the future. The present paper reports on

the developmental process of the instrument. It aims to assess two

sets (Set A and B) of self-constructed questionnaires by focusing on

23

detecting and eliminating the erroneous wording and phrases in each

item in case of an inappropriate and incongruent wording between

sub-scales and items.

The results indicated in the table 6, 7, 8, 9 and 10 (see appendices)

found that 19 out of 63 items under the six sub-scales in the set A

‘teacher management’; and 7 out of 25 items in the set B ‘cause of

teacher burnout’ found needed to be omitted. The average score of

IOC test technique at ≤.50 and the sum scores were of the sets ‘A’

∑M=.60; and Set ‘B’ ∑M=.68, respectively. As regards reliability, for the

set A the agreement was at a moderate level (M=3.27; SD=0.22,

α=.801; r=.395; KMO =.588) and for the set B, a moderate level was

found, too (M=3.31; SD=0.82, α=.956; r=.996; KMO =.652) respectively.

Discussion and answer to the questions

This study is part of a study of ‘Teacher management at teacher

training institutes in Laos’ in the future, this paper present the test

score of validated of both set A and B which is rated and assessed by

ten specific experts and senior teachers, regarding the test each sub-

scale and items with the acceptable in generally. However, to answer

some question in such what does wording and phrases in the

questionnaires sets needed to be omitted?; Is there statistically

significant in reliability test? the immense result of the study shown in

tables 6,7,8,9 and 10 that could be observed in the appendices and

there were twenty-six items of both sets that need to be eliminated or

improve in some particular items as due to low average of mean score,

the test of reliability was statistically significant in both set A and B

that means questionnaires structure, sub-scale, item loaded and

research objective were gradually consistent.

For the question to ‘which wording and phrase do the respondents

reject frequently?’, this stud, mostly of the respondents including

experts, senior teachers and academics staff was concerned and felt

low foresee in responding, especially ambiguous, complex and

double-barreled question, terminology, these terms and phrases were

24

reflected by respondents in part of their opinions drained on the

space at the end of each sub-scale provided, in this case it was

congruence to the Oppenheim, (1992); Warwick & Lininger, (1975)

suggested the words used in questions should be understandable to

all respondents, and the meanings imputed to those words should be

as universal as possible among respondents; Krosnick (1999)

confirmed that the words used in questions should be understandable

to all respondents, and the meanings imputed to those words should

be as universal as possible among respondents; Sisaad, (2000)

commented word loaded to each items must be tighten to the sub-

scale and research objectives; Likitwattan (2000) viewed language is

inherently ambiguous as the major of missing data in the survey

questionnaires.

Besides, the issues regarding erroneous wording and phrases, Parten,

(1950); Yanprasart, Y. (1982). question wordings should avoid bias that

would push answers one way or another; Likert, (1932); Thurstone,

(1928) in order to minimize the impact of the idiosyncrasies of item

wordings, it is best to aggregate answers to a battery of items into a

single index and Krosnick (1999) viewed logically that the items used

should be the few most efficient and effective ones tapping the

construct of interest.

In addition, the applications wording into questionnaires should be

examined in multi-methods that Johnson and Christensen (2012)

pointed out the pilot test to determine whether the it operate properly

before using it in a research study and the test should note any points

of confusion; Martin, (2006) Constructing questionnaire involves many

decisions about the wording and ordering of questions, selection and

wording of response categories, form acting and mode of

administration of the questionnaire.

It had has above mentioned, this study would highly given the

invaluable lessons in planning to draft and draw research instrument

by own researcher, particular questionnaire which is widely

applications in educational research realm, it should be self-awareness

25

on the research topic, scope of research, conceptual framework,

material supports, advisor in field available, experiences, read the right

books to draft questionnaire, meet the right people in the right field

or area to share ideas as peer reviews, linguistic, practice in the field

work to gathering the most familiar, local and career words. Besides, it

seem concerned to the target organizations that planned them involve

our research doing, examinee’s education background, language

knowledgeable, context and contents.

Conclusion

This study is part of a study of ‘Teacher management at teacher

training institutes in Laos’ in the future and researcher self-constructed

questionnaire and it on the process of instrumental development. It

could be overviews the theoretical framework and result of piloting as:

Questionnaires is a research instrument and commonly used for

collecting data from the samples defined, particular quantitative

research which is consists of a set of self-constructed and develop by

researchers to obtain data and it can be said examined the quality of it

through the validity and reliability test methods, both never separately

each other.

Validity is the accuracy of the inferences, interpretation, or action

made based on test scores, while reliability refers to the consistency or

stability of the test score. Coefficients of reproducibility and reliability

such as Cronbach's alpha and the Guttman coefficient of

reproducibility, it the consistency or stability of test scores. Thus, both

are tools of an essentially positivist epistemology to consider in using

a test.

Pilot study is the first stage of research practical work and it can help

researcher get more vital information about feasibility of the research

instrument use for the full-scale research, doing the researcher in any

field will be needed to ensure of its validity and reliability, particular in

part of questionnaires must intend of language knowledge,

appropriateness of wording and phrases.

26

The result of the pilot study in examining the validity and reliability of

self-constructed questionnaires of the both sets A and B found the

moderate level and there is no statistically significant in the reliability

test of both questionnaires sets and there was gradually satisfying

appropriate. However, it seem to be examined once again while

compare between the scorers and the criteria of mean average.

This study also faced many unforeseen circumstances in such material

supports, data collection, time allowance, relevant organizations,

target participants and budget strictly. In this occasion, I personally

like to have deepest thanks to the Hungarian Government in offering

the scholarship through the Stipendium Hungaricum Scholarship

Program to me and come to study in Hungary so far.

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industrial Pedagogy, King Mongkut's Institute of Technology

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10. Martin, E (2006) Survey Questionnaire Construction, Director’s

Office U.S. Census Bureau Washington, D.C. 20233,

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11. Oppenheim, A N. (1992) Questionnaire design, interviewing, and

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basic concepts and terminology, (Module 1: Quantitative research

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Delacroix, 75116 Paris, France.

15. Sinjaru, T. (2012:71) Researches and Statistical Analysis through

SPSS and AMOS: Basic to advances: SR Printing Mass Production

LTD, 2/103-106 Group9, Cheng watthana street, Parkred district,

Nonthaburi Bangkok, PO BOX 11120, 13th edition, P 65.

16. Sisaad, B. (2002:74-75) Basic researches, 122/107-109 Prachauthit,

Soi91/1 Thoongkhru, Bangkok, Thailand. P=94.

17. Soukkhavong, S. (2010). Handbook of Research in Education:

Faculty of Education, National University of Laos, Dongdok village,

Saithani distirct Vientiane capital, Laos.

18. Thurstone, L.L.(1928). Attitudes Can Be Measured, University of

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Chicago, retrieved from:

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English Proficiency Test for Automotive, Specification Certificate

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and practice. New York: McGraw-Hill. 1st edition. Retrieved

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Practice/dp/0070683956

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Thesis, Srinakharinwirot University.

29

Appendices:

Table 6. The percentage of the gender distributions (N=50)

Valid

Gender Qualification Working experiences

(Years)

M F Tot

al

BA MA Ph

D

Tota

l

<10 10-

15

16

>

Tot

al

Frequen

cy

(%)

22

46.

25

28

53.

75

50

100

.0

21

41.

25

27

56.

25

2

2.5

50

100.

0

16

23.7

5

15

33.

75

19

42.

5

50

100.

0

Table 7. Set A ' teacher management, the test of validity by IOC

technique

Six sub-scales N

No.

of

items

∑IO

C

Result

Interpret

Accepted Rejected

Job analysis

5

specific

experts

9 .80 8 1 High

Recruitment-Selection 9 .44 7 2 Low

Pre-service training 9 .64 7 2 High

Performance appraisal 11 .65 8 3 High

Compensation 18 .63 12 6 High

Training needs

assessment 7 .48 2 5 Low

Total = 5 63 .60

44

Items

19

items High

(Index Of Item of Objective Congruence or IOC = .05)

Table 8. Show the test score of mean, SD, Cronbach, Correlation

coefficient and KMO

Six sub-scales N No of

items Ʃ x SD

r KMO

Job analysis 20 8 3.22 .30

.80 .395 .588

Recruitment-Selection 20 7 3.32 .35

Pre-service training 20 7 3.31 .62

Performance appraisal 20 8 3.13 .44

Compensation 20 12 3.22 .38

Training needs

assessment 20 2

3.45 .45

Total 44 3.27 .22

30

Table 9. Validity test of Set B 'Cause of teacher burnout'

Three sub-scales N

No

of

item

s

∑IO

C

Result

Interpr

et Accepte

d

Reject

ed

Teaching loaded 4

senior

teachers

8 .65 5 3 High

Teacher compensation 10 .70 8 2 High

Teaching career development 7 .71 5 2 High

Total = 5 25 .68 18 7 High

(Index Of Item of Objective Congruence or IOC = .05)

Table 10. Reliability test of Set B 'Cause of teacher burnout'

Six sub-scales N No of

items Ʃ x SD

r KMO

Teaching loaded

20

5 3.23 .90

.956 .996 .652 Teacher compensation 8 3.41 .73

Teaching career

development 5

3.31 .99

Total 18 3.31 .82

31

FROM INFORMATION ASYMMETRY TO INFORMATION

OVERLOAD - TECHNOLOGICAL SOCIETY OF

CONSUMERS

Katarzyna Południak-Gierz2

Jagiellonian University, Str. Gołębia 24, 31-007 Kraków, Poland

k.poludniak-gierz@doctoral.uj.edu.pl

Problematic regulation of information duties

The purpose of the research is to identify the major issues connected

with regulation on information duties in consumer law. EU legislator

has implemented a model of protection by information. He obliged

the professional to provide a weaker market participant (consumer)

with data necessary to assess the risks and benefits of particular

agreement: i.e. details on the object of the contract, costs and the

parties of transaction. It is believed that providing weaker party with

data on the matters can diminish information asymmetry between

contractual parties.

Notwithstanding, current studies on consumer behaviour suggest that

this assumption may be erroneous, especially in case of transactions

concluded via Internet. Discrepancy between human capability to

absorb and process information and the amount of data an average

person is exposed to on daily basis undermines the functionality of

this protective model. The economic analysis of law itself delivers

arguments against the functionality of expanded information duties.

Cognitive limitations, costs of acquiring and processing data, possible

benefits of familiarizing oneself with it, compared with the effort

2 Katarzyna Południak-Gierz is a PhD Candidate at Jagiellonian University, Krakow,

Poland, Legal Advisor Trainee, and since 2017 she is conducting research program "PRELUDIUM 11" on "Personalized agreements in the light of civil law" under the supervision of prof. dr. Fryderyk Zoll.

32

taken, weight against the rationality of reading information provided

by the professional. Studies on consumer behaviour demonstrate that

there are also several factors diminishing the effectiveness of such

information given by the trader according to his pre-contractual

obligations. The most significant are: information overload effect,

endowment effect, unrealistic optimism, status quo bias, loss aversion,

regret avoidance and the sunk cost fallacy.

What are the weaknesses of the contemporary legislative approach?

What does lead to the partial failure of protection by information

paradigm? Can the system be repaired or should we look for other

model of protection in case of consumer law?

Examining the aforementioned can let one determine the main issues

the EU legislator has to cope with in the forthcoming years when

regulating the status of the consumer. The main goal of this research

is, therefore, to give an insight on future of information duties in

consumer law within the Digital Market sphere.

Hypothesis and methodology

Despite the complexity of regulation on information duties in B2C

online transactions, the consumer is frequently not aware of the

aspects of the contract that are vital in his or her situation. Contractual

terms are rarely read and pre-contractual details play a minor role

during the decision making process.

The aim of this research is to localize illusions of functionality in the

contemporary regulation model. Therefore, it is highly recommended

to supplement traditional dogmatic law analysis with other

investigation methods in order to obtain a broader perspective. Legal

regulation might be flawless but some other, extra-legal factors – e.g.

law subjects characteristics, market failures, technology – may

undermine its effectiveness. Accordingly, to identify the elements

impeding protection by information in the online environment, an

interdisciplinary approach is recommended. Theory triangulation

33

seems the most adequate tool of research. Taking multiple

perspectives while interpreting the data enable one to define issues

that are not clearly visible from the legal point of view but can

influence application of law.

Firstly, the current law provisions are presented and analysed in the

light of the requirements of good legislation. Then the issue is

assessed from economic analysis of law perspective. The factors that

can reduce its practical utility are to be enumerated and challenged.

Afterwards, the results of research on consumer behaviour are

examined and the correlation between the effectiveness of the

regulation on the pre-contractual information duties and behavioural

tendencies is stated. Finally, taking into consideration the flaws and

issues diminishing the accuracy of current protection by information

model, postulates de lege ferenda are to be formulated.

The requirements of good legislation

The EU legislator decided to introduce a model of protection by

information based on a wide catalogue of information duties. Due to

the conviction that more information provided equals better informed

consumer the main effort was put into enumerating all the pieces of

data potentially necessary to assess the benefits and risks of every

transaction.

In the Article 6 of Directive 2011/83/EU of the European Parliament

and of the Council of 25 October 2011 on consumer rights, amending

Council Directive 93/13/EEC and Directive 1999/44/EC of the European

Parliament and of the Council and repealing Council Directive

85/577/EEC and Directive 97/7/EC of the European Parliament and of

the Council EU legislator decided to introduce a closed list of pre-

contractual specifics the trader shall provide the consumer with. The

enumeration covers nineteen issues:

the main characteristics of the goods or services, the identity of the

trader, his address and contact details, price, costs of delivery and

communication, arrangements for payment, way of delivery,

34

performance of contractual obligation, the right of withdrawal and its

conditions, the legal guarantee of conformity for goods, after sale

customer assistance, services and commercial guarantees, the

existence of relevant codes of conduct, the duration of contract

(where applicable), the minimum duration of the consumer’s

obligations, the existence and the conditions of deposits or other

financial guarantees, the functionality of digital content, its

interoperability with hardware and software, possibility of having

recourse to an out-of-court complaint and redress mechanism.

All that information requirements have obligatory character and

cannot be altered or changed neither by the state legislator nor by the

trader. The information forms an integral part of the distance or off-

premises contract and can be altered only if the contracting parties

expressly agree to do so.

Less stress has been put on the requirement of transparency. Despite

establishing this long and detailed list of information requirements the

EU lawmaker underlines, that the information should be provided in a

clear and comprehensible manner. Here strikes a paradox – this

amount of data is highly unlikely to be transparent. The abundance of

aspects the consumer has to be informed about by itself must obscure

the picture.

Additionally, the character of agreement can make it a subject of

another regulation and the aforementioned list may be lengthened by

sector-specific provisions. Requirements of the Directive on Consumer

Rights are amplified by information duties of Directive 2006/123/EC

on Services in the Internal Market and Directive 2000/31 / EC on

Electronic Commerce. What is more, EU Member States retain the

possibility to impose additional information requirements applicable

to service providers established on their territory. If any provision of

the Directive on Consumers Rights stays in conflict with a provision of

an European Union act governing specific sector, the specific

regulation should be given priority. This conflict of law norm is a

legislative recognition of current rules concerning the mutual relations

35

between laws - lex specialis derogat legi generali. It is important,

however, that the derogation by the provisions of sectoral laws do not

include provisions of Directive on Consumer Rights in extenso, but

only these rules which collide with specific regulation of particular

sector (Lubasz, Namysłowska, 2015, commentary on Article 12).

In the light of the rule of law principle, good law should be consistent,

free of contradictions, stabile, possible to fulfil and - last but not least

– transparent. Legal provisions ought to be clear, obvious and

understandable without doubt or ambiguity. It facilitates creating

“foreseeable” legal environment and supports the principle of legal

certainty. Realisation of the principle of transparency of law in context

of information duties in the light of current regulation is dubious.

Although Directive 2011/83/EU requires maximum harmonisation, the

scope of information obligations of the entrepreneur can be

significantly broader than provisions of Directive on Consumer Rights

suggest. In order to determine what are information duties, different

laws are to be taken into account (Lubasz, Namysłowska, 2015,

passim). Frequently it is necessary to utilize various interpretation

methods to clarify, which information duties apply in a particular case.

This diminishes the clarity of law and is strongly undesirable in the

light of the rules of law principle. Regulation remains non-transparent,

shattered and lengthy, sometimes contradictory. Those elements

lower the quality of legislative technique. It is especially alarming due

to the fact that those norms apply to private individuals, as a rule not

having legal formation. If the act were to support consumers in

executing their rights, it should be clear enough to be understood by

them without asking for legal counsel.

To sum up, regulation on information duties aims to combat the

information asymmetry between the consumer and the trader. Yet the

legislative technique chosen by the lawmaker obscures the normative

content of the act. The provisions are not sufficiently transparent, what

per se reduces their effectiveness. If it is not clear for both the

consumer and the trader what the information duties of the latter are,

36

the former is unlikely to benefit from such an undetermined

protection. The consumer cannot easily verify, what he should be

informed about. Not being aware of scope of data he ought to be

provided with, he cannot practically exercise his right to be informed.

This lack of transparency brings inconvenience to the trader as well.

Even proceeding with due diligence, frequently in case of a dispute he

finds himself unsure of meeting all the legal requirements regarding

information duties (Grochowski, 2012, p. 191).

Economic analysis of law perspective

A rational consumer before concluding a contract seeks information to

assess whether the transaction will be beneficial for him. Borders of

search, in the light of the economic analysis of law, are drawn by its

costs. The moment in which expenditures incurred in order to find the

information outweigh the benefits it brings an end to such search.

However, in case of distance contracts the possibility to assess the

object of the contract and the credibility of the trader – or, more

generally speaking, risks and benefits of the transaction - is limited to

analysis of information published by the entrepreneur (Mikłaszewicz,

2008, pp. 59-60, p. 72). In such situation consumer is likely to be

lacking vital information on the contract. The need for legislative

intervention becomes clear. The EU lawmaker imposes catalogued

disclosure obligations of the entrepreneur.

Notwithstanding, the consumer, who is presented with a very

extensive catalogue of data, is likely to resign from reading the

information given. The decision not to get acquainted with the

information folder can be the induced by many rational factors.

Firstly, so-called information costs include expenses associated with

the search of data but also with its processing: effort to perceive,

extract and understand the information (Mikłaszewicz, 2008, pp. 70-

72). If the legislator aims at diminishing the information costs it is

highly recommended to ensure not only its attainability but also that

it is ready to use. Complex, detailed or long information, written in a

37

way difficult to read or comprehend, requires a significant effort to be

transformed into applicable knowledge about the issue.

A person aware of her cognitive limitations is not willing to make an

effort, which will most likely fail to improve the situation or expand her

knowledge. Absorbing all the provided information, understanding it,

selecting data relevant in a particular situation and processing it in

order to take the best decision is often time consuming, intellectually

demanding and tiring. As a consequence, its costs are

disproportionate to the value of the concluded agreement, not to

mention the possible benefits of knowing pre-contractual information.

Therefore, homo oeconomicus is willing to take the risk of concluding

a transaction without familiarizing himself with all the pre-contractual

specifics. In this manner he avoids unnecessary and disproportionate

costs of processing information.

An average consumer has neither the expertise on the subject of the

contract, nor the knowledge of the law, allowing accurate

interpretation of all provisions of a standard contract. Decoding the

content of the agreement concluded exceeds his capabilities. Due to

the aforementioned, frequently consumer’s investigation will finish

after confirming the object of contract and its price. The verification of

payment method and the time and place of delivery will take place

after decision on conclusion of contract.

In addition, a consumer is often not able to find the pieces of

information he needs to successfully compare offers. Here the

phenomenon of an adverse selection appears (Wilson, 1987). A

consumer is provided with a significant amount of information.

Assuming that he is a regular participant of the market, lacking special

knowledge, considerable experience or deep market insight, he will

not be able to extract from these data the pieces of information that

are really important in his situation efficiently not putting additional

effort. Thus, being unable to evaluate quickly the utility of the

information, he will treat in the same way pieces of information that

are potentially useful and both totally irrelevant.

38

Thus, from the point of view of the entrepreneur, providing key details,

which could discourage the consumer from the agreement, is

economically unjustified. Similarly, trader is not motivated to verify the

accuracy of data, if the other party is not able to distinguish between

correct and invalid statements.

Therefore, although the information duties are obeyed by the

professional, the principle of transparency is not fully implemented.

Even with due diligence of the entrepreneur the pre-contractual

information prospect is too long and too complicated for the

consumer to comprehend. From the pragmatic point of view,

absorbing and processing all that data would be economically

unjustified.

As a result, the consumer is no longer interested in reading the pre-

contractual. It is not economically justified to make the effort of

absorbing and processing the additional information that appears

pre-contractual information folder. On the other hand, none of us is a

perfect homo oeconomicus. Therefore there might be other reasons,

i.e. of psychological character that may enhance the effectiveness of

extensive catalogue of information duties.

Behavioural studies approach

The first problem, addressed by the behaviourist in the eighties of XXth

century, is the information overload effect: too much information

hinders the understanding of the case. Having too much data makes it

difficult to make an optimal decision. However, in 2003 (Hoyer,

MacInnis, Pieters, 2012, p. 197; Foxall, 2015, p. 316.) these thesis were

challenged - information overload was rather associated with the

structure of data, its distribution then with its amount. It was claimed

that information overload effect appears because of chaotic,

uncomprehensive way in which the data is presented.

Further research, however, still indicates a positive correlation between

39

the adequacy of person’s activities and the amount of data she

disposes of (Eppler, Mengis, 2004, pp. 325-344). However, this link

exists only to a certain point. When a sharp decline exceeded in the

adequacy of the actions taken is noticed. It was concluded that when

there is too much information available, it ceases to be a factor in the

decision-taking process. It was pointed out that with the increase of

the amount of details it becomes more difficult to find pieces of

information vital in the situation of a given consumer.

Interestingly, this critical point of information overload in case of

online transactions comes surprisingly fast. It became especially visible

during a behavioural research carried out for European Commission.

Results of Testing of a Standardised Information Notice for Consumers

on the Common European Sales Law Request for Services

JUST/2011/JCIV/FW/ 0135/A4 in the context of the framework service

contract EAHC/2011/CP/01 from 2013 proved that normally

consumers do not read notice of consumer rights in detail. Half of

consumers spends no longer than 6-7 seconds on reading it and less

than 15% of the people interviewed look at the information more than

once. Only 32% of the consumers scroll all way to the end of the

presented document. Approximately one in five respondents claim to

have read it in full. As a result only a minority benefits from disclosed

information.

Respectively, there was a particularly illustrative empirical study

conducted by Gamestation. The entrepreneur put in the contract an

opt-out clause, under which the consumer concluding the contract

agrees to convey ownership of his soul. To make this clause even less

attractive for the consumer, people who opted it out were entitled to

receive vouchers worth £5. Notwithstanding, 88% of consumers have

not benefited from the possibility of exclusion of that clause.

Another issue, frequently raised by behaviourist, is the endowment

effect. An average person prefers what he already has in possession to

the thing he can obtain. Similarly, a subject about which the person

has already learnt tends to be considered more appealing than the

40

one about which she still has no data. What is more, a consumer who

has made an effort to read the available information is usually already

too involved to actually assimilate some new specifics that should (in

the light of the rationality principle) affect his decision. These

tendencies automatically diminish the weight of pre-contractual

information in consumer’s decision process.

In addition, the trust in the known entity as well as unrealistic

optimism of consumer can also disrupt the process of decision

making. Rationality of the consumer is also biased by the tendency to

ignore information that undermines the accuracy of the earlier

decision. In this way a person protects herself from cognitive

dissonance. Behavioural biases that speak against the rationality are as

well: status quo bias, loss aversion regret avoidance or the sunk cost

fallacy. Having a disturbed sense of equivalence means that one is

convinced that a change can only deteriorate his situation. Loss

aversion is a tendency to prefer avoiding losses over acquiring gains.

Similarly, regret avoidance prevents a person from changing a bad

decision due to the fear that is can bring further deterioration of her

situation. Finally, there is a Concorde fallacy, that forces one to

continue investing resources on a project, product, etc. in order not to

waste the money or effort he has already put into it, regardless the

unlikeness of success.

All the aforementioned biases and effects, present in consumer

behaviour, hinder absorbing and processing information as well as

decision –taking. Those phenomena have universal character and, in

order to complete the picture, it is needed to take into consideration

also behavioural biases that are characteristic for human activities in

the online environment.

So far, preliminary studies on consumer behaviour operating via the

web and beyond it (Sagarin, Britt, Heider, Wood, Lynch, 2008, pp. 4–

17). indicated that on the Internet consumers has greater difficulty in

noticing and assimilating even simple information. This is caused by

the following factors: the intensity of the exposure to data, personal

41

irrelevancy of information, conviction that the information is already

known and various distractions (Luzak, 2015).

On the Internet we are constantly inundated with information: mostly

commercials but also news, messages, pictures and videos. The

consumer ceases to pay attention to this messages because of the

intensity of exposure. Information overload changes general

consumer’s attitude towards data, increasing likelihood of neglection.

What is more, pre-contractual specifics provided by the trader are

frequently personally irrelevant to the consumer. If the catalogue

includes mostly data that is uninteresting for the individual, not

corresponding with his situation or needs, it is highly improbable that

he reads it. Often the information is disregarded as already known. It

is especially the case of standardized contract. The consumer is

convinced that he will not find in the document he received any new

or unexpected pieces of information. In those situations it is often

believed, that reading one standard form is sufficient as standard

forms in case of such type of contract should not differ. Finally, in

online environment consumer gets easily distracted. Pop out windows,

aggressive commercials, bold font, colour, movement, sounds, etc. –

they are all constantly fighting to attract his attention. Aware of the

aforementioned, entrepreneurs sometimes do not put an effort

necessary to capture and hold the attention of consumer.

Those issues, typical for person’s online activities, have to be added up

to the common behavioural tendencies diminishing the effectiveness

of pre-contractual arrangements. As a result, one is to discover that

functioning of current form of protection by information in case of

Internet users is even more dubious than in traditional face-to-face

consumer transaction.

On the other hand new technologies provide consumers with extra-

judicial tools of protective character. These are for instance: search

engines, price filtering, reputation based mechanisms and trust marks.

They enable consumer to compare the pricing, sellers credibility and

quality of service of the good in question. Yet, they do not enhance

42

the effectiveness of regulation on pre-contractual information itself,

they are rather the private response on the lack of efficient state

regulation of the matter.

Lesson to be learnt

Empirical research, behavioural studies and economic analysis prove

that consumers do no acquaint themselves with the information

provided by the trader. The fight against this trend appears now not

only doomed to failure, but also irrational. Absorbing and processing

given data is unprofitable and senseless for the consumer.

Firstly, it requires substantial effort and time. In addition, those costs

may not lead to the intended purpose. Consumer is rarely an expert

aware of practical and legal implications of obtained information. For

example an average consumer does not know which contractual

provision - though seemingly very unfavourable - is irrelevant in his

situation because it would be consider void due to the content of

mandatory rules. Similarly, he is not able to identify circumstances that

apparently have little importance but actually can significantly worsen

his legal position. Because of that comparison of the pre-contractual

information provided by different traders (time consuming and

difficult) frequently will not lead to correct conclusions. Even if

consumer understands the available information, he will have a very

limited reaction options. He can withdraw from concluding the

agreement and begin to look for another offer. He can attempt to

influence the entrepreneur (success highly unlikely in case of

automatized online procedures) or conclude the contract in spite of

these negative, in his view, circumstances.

Not only the rational arguments speak against effectiveness of

required by law complex and elaborated pre-contractual information

catalogues. There are also numerous behavioural biases that impede

the consumer to benefit from this kind of protection. In order to create

law that can diminish information asymmetry the legislator should

take into consideration following behavioural tendencies and

43

phenomena: information overload, endowment effect, unrealistic

optimism, status quo bias, loss aversion, regret avoidance or the sunk

cost fallacy. When regulating legal status of the consumer operating

via Internet, the legislator should also consider that in this

environment the one is rather passive and has diminished capability to

notice and process even simple communication. The consumer

disregards data that is personally irrelevant, presumably known, not

visible enough or impersonal.

The costs of absorbing and processing pre-contractual information are

disproportionately high in the context of: the value of the object of the

agreement and possible benefits of having the information. Thus,

taking into account the specifics of online market, we should

reconsider whether in fact model of protection by information in its

current form could result in reducing the asymmetry between the

consumer and the professional entity.

Postulates de lege ferenda

The results economic analysis and behavioural studies allow to

formulate a list of demands in the context of legislative technique.

Firstly, pre-contractual information should be simplified, standardized,

disclosed in a clear and legible manner as well as be easy to compare.

This can diminish the costs of absorbing and processing information

in general.

Secondly, the scope and details of information provided should be

tailored to match the characteristics of the consumer - his knowledge,

needs and abilities. Both: content and form should be adjusted to

consumer’s needs, situation and interests. Fewer but more accurate

pieces of pre-contractual information are required. This way the data

provided would be applicable and useful for the consumer. What is

more, positive effects can be produced by introducing assistants to

help consumers in decision-making process. These assistants can be

either of human or virtual nature, giving advice on the matter,

attracting his attention to vital pieces of information and therefore

44

making contractual relationship more personal. Basically, prioritization

and personalization of pre-contractual information is needed. It

enables us to eliminate irrelevant, impersonal, not easy to understand

data and provide pieces of information that are personally vital, easy

to absorb and process as well as reasonably short.

The implementation of those postulates can contribute to increase in

the efficiency of statutory disclosure duties. However, it is easier said

than done. The doctrine suggests that in order to increase the

effectiveness of the protection of the information it is necessary to

adopt one of two strategies: either to introduce prioritization of

information (e.g. by using Big data technology to select and order

information – personalize it), or restrict the freedom of shaping the

legal relationship through the establishment of compulsory rules

(Tereszkiewicz, 2015). The current model of protection by information

can possibly be adjusted to the needs of its subjects by prioritization

of information. (Bush, 2016). However, this method would mean a

drastic change in legislative techniques. Sceptics underline personal

data protection issues and problems of verification of compliance with

law. Legitimacy of the law stated by code is questioned and the

certainty of law is endangered (Porat, Strahilevitz, 2014, pp. 1453-

1470). In conclusion, until today no widely accepted manner of

prioritization has been proposed.

As an alternative, introduction of compulsory normative standards was

proposed. Dispositive norms tend to favour the stronger contractual

party. On the contrary, compulsory rules serve the weaker one at the

price of limiting contractual freedom. The weaknesses of the model

may be cured by implementing minimal standards for performance of

the contract in the form of peremptory norms. This could contribute

to eliminating the most evident cases of information asymmetry

abuse.

Behavioural touch in consumer law – towards better legislation

Nowadays, the EU legislator is inclined to apply peremptory norms,

45

but he also tries to take into account some of behavioural tendencies

(e.g. art. 5-6, art. 8 of Directive on Consumer Rights). The lawmaker

has stricter requirements in case of entrepreneurs acting online on

how to make information available to the consumer. Offline, it is

sufficient to provide information in a manner that forces consumers to

certain activity e.g. looking for a needs hyperlink (obligation to

provide information). Online, the consumer has to be provided with

information in a way that does not force him to make any additional

steps in order to familiarize himself with data (obligation to give

information). By this small but significant variation in the wording of

provision the inclination of consumer to be more passive online then

offline is addressed (Luzak, 2015).

In this context, also the initiatives to incite consumers to get familiar

with provided information in case of transactions of the utmost

importance is to be positively assessed (e.g. regulation of consumer

credit agreements). Here the standardization of the information

provided as well as introducing an assistant (adviser or informer)

involved in the decision-making process of the consumer are highly

recommendable. Similarly, frequent use of opt-in mechanisms instead

of opt-out option can be useful. Imposing these may actually

substantially alter consumer’s situation due to behavioural biases

connected with the fear of change. This kind of legislative tricks

permits to promote attitudes and behaviours desirable in the eye of

the lawmaker without restricting freedom of the subjects of law.

Conclusion

In the summary – current regulation on pre-contractual obligations of

the professional in case of B2C transactions, especially in online

environment is not effective. Instead of diminishing asymmetry

between the parties it creates a false illusion of functionality. Scientific

world should not turn the blind eye towards the results of empirical

and behavioural studies but benefit from them. The idea of this study

is therefore to attract attention to the issue of pre-contractual

information duties. Regulation of the matter is not flawless and

46

interdisciplinary approach can help to substantially improve it. For the

time being it is not possible to use personalization to prioritize

information duties (possibly will never be), therefore it is rational to

use the tools that are available at the moment. Interdisciplinary

approach enables the legislator to efficiently promote good practises

without imposing peremptory norms. Knowledge on behavioural

biases gives us an opportunity to substantially improve consumers’

situation taking small steps – e.g. by application of nudges, opt-in and

opt-out clauses and assistants. Considering seriously the implications

of behavioural studies can increase the efficiency of contemporary

protection by information model.

References

1. Bush, Ch. (2016). The Future of Pre-contractual Information Duties:

From Behavioural Insights to Big Data, Research Handbook on EU

Consumer and Contract Law edited by Ch. Twigg-Flesner,

Cheltenham, UK, Northampton, MA, USA: Edward Elgar Publishing.

eISBN: 978-1-78254-737-2, 221-241.

2. Eppler, M., Mengis, J. (2004). The concept of information overload: a

review of literature from organization science, accounting,

marketing, MIS, and related disciplines, The Information Society: An

International Journal 20(5), 325-344.

3. Foxall, G. R. (2015). The Routledge Companion to Consumer

Behavior Analysis, Routledge, ISBN-10: 0415729920.

4. Grochowski, M. (2012). Obowizki informacyjne w umowach z

udziałem konsumentów a nadmierny formalizm prawa, Kierunki

rozwoju europejskiego prawa prywatnego, edited by: M. Jagielska,

E. Rott-Pietrzyk, A. Wiewiórowska-Domagalska, Warszawa:

C.H.Beck, ISBN: 978-83-255-1994-0, 178-203.

5. Hoyer, D W., MacInnis, D. J., Pieters, R. (2012). Consumer behavior,

Cengage South-Western, ISBN-101133435211.

6. Ustawa o prawach konsumenta. Komentarz. (2015). edited by D.

Lubasz, M. Namysłowska, Warszawa: Wolters Kluwer Polska S.A.,

ISBN: 978-83-264-8130-7.

7. Luzak, J. (2015). Online Disclosure Rules of the Consumer Rights

47

Directive: Protecting Passive or Active Consumers?, Journal of

European Consumer and Market Law, 4(3), 79–87.

8. Mikłaszewicz, P. (2008). Obowizki informacyjne w umowach

z  udziałem konsumentów na tle prawa Unii Europejskiej, Wolters

Kluwer Polska S.A.: Warszawa, ISBN: 978-83-7601-049-6.

9. Porat, A., Strahilevitz, L. J. (2014). Personalizing Default Rules And

Disclosure With Big Data, Michigan Law Review (112), 1417-1478.

10. Sagarin, B. J., Britt, A., Heider, J. D., Wood, S. E., Lynch, J. E. (2003).

Bartering Our Attention: The Distraction and Persuasion Effects of

On-line Advertisements, Cognitive Technology (8), 4–17.

11. Tereszkiewicz, P. (2015). Obowizki informacyjne w umowach o

usługi finansowe. Studium instrumentów ochronnych w prawie

prywatnym i prawie unijnym, Warszawa: Wolters Kluwer Polska S.A.,

ISBN: 978-83-264-3426-6.

12. Wilson, Ch. (2008). Adverse selection. In S. N. Durlauf, L. E. Blume,

M. Palgrave (ed.), The New Palgrave Dictionary of Economics.

Second Edition. Retrieved from:

<http://www.dictionaryofeconomics.com/article?id=pde2008_A000

040> doi:10.1057/9780230226203.0011

48

SUFFICIENCY OF FINANCIAL LITERACY: A CASE STUDY

OF UNIVERSITY STUDENTS IN SLOVAKIA

Beáta Gavurová3, Eva Huculová4, Matúš Kubák5

Technical University of Kosice, B. Nemcovej 32, 040 01 Košice, Slovak

Republic

beata.gavurova@tuke.sk;

eva.huculova@tuke.sk;

matus.kubak@tuke.sk

Introduction

Financial literacy is increasingly brought to common people’s

attention and there are evident activities of policy makers aimed at the

support of financial education in many countries of the world.

Financial literacy (FL) represents a basic and inevitable skill that is

important for human existence in the 21st century. Who is not

sufficiently financially literate, cannot fully participate in the modern

3 Beáta Gavurová, PhD, MBA, Associate Professor, works as assoc. professor at the Faculty of Economics, Technical University of Kosice. In her research work she has focused primarily on measurement and management of performance and efficiency in hospitals, process optimization in public sector, social and health policy, health-demographic analysis, addressing the regional disparities in the availability and quality of health care. For the last five years she coordinated and participated in 15 significant international as well as national grant projects focused on the issue of implementation of ICT systems, the efficiency of health systems and the implementation of specific metrics of efficiency, optimization of processes in the public system, multidimensional analysis of one day surgery and so on. 4 Eva Huculová is a doctoral student working under the supervision of Beáta Gavurová and joined the Department of Banking and Investment at the Faculty of Economics in 2016. Her thesis is concerned with the measurement and management of efficiency in social and health policy. Her main research interests are health care utilization, quality of health care, process optimization in public sector, education support and measurement of efficiency in education system in context of the implementation of financial literacy. 5 Matúš Kubák, PhD, is fellow at the Faculty of Economics of Technical University in Kosice. His professional specialisation is aimed on experimental economics, agent based modelling, quantitative methods and econometrics.

49

economy and its relations. Indebtedness of the population has

changed over few decades and the consumption with its consequent

financial burden on individuals increase. Loans are in globally well

founded, loans may helps in some undesirable situations and thus

make it easier to properly deal with the circumstances. Unfortunately,

money lending has became for many people as a traditional way of

life and short-term loans they use as financial aid for acquiring things

that actually do not need either. However, such behaviour may lead to

difficult life situations and financial problems. Trunk & Dermol (2015)

emphasize a necessity and importance of FL for individuals in order to

manage a family budget optimally, or to create monetary reserves.

The appropriate financial education may also eliminate inequalities in

social-economic status of students. Without basic financial skills

individuals cannot make eligible financial decisions on family budget

with implications on further generations (Szovics, 2012). FL should be

translate in education of secondary school students to support

management of their personal finances which may lead to higher

preconditions for successful and quality life (Totenhagen et al., 2015).

In this sense, it is also appropriate to focus on the use of modern

methods that promote creativity and initiative of students (Belás et al.,

2016). Education has effects on society as to a whole as to the

individual and play important role at national and local level (Johnes,

Portela & Thanassoulis, 2016; Starček & Trunk, 2013). Education of

finance and money management skills are key determinants of

financial outcomes. These basic financial skills and knowledge lead to

diminution debt-to-income ratios of individuals or student loan debt

that are under the financial pressure (French & McKillop, 2016;

Williams & Oumlil, 2015). Accordingly Fabris & Luburic (2016),

González-Sánchez & De Los Ríos Sastre (2014), the level of FL of youth

is insufficient what could give rise to personal financial distresses and

exacerbated financial stability with adverse implications on public

welfare and economic prosperity of the country. As a consequence

financial literacy is considered to be one of the important factor

affecting economic growth when higher financial education or

financial literacy positively influence on economic growth in given

50

country (Dragoescu, 2015; Barro, 2013; Afonso & Aubyn, 2005).

Generally, education belongs to important and crucial services

provided by governments. Structure of education programs and FL’

standards vary in many countries in Europe which may lead to

different student’s knowledge regardless of field of study or university

at a comparable level. Seeing that provision of education programs is

paid for at least in part from the public purse, for many countries is

essential provide education as efficiently as possible (Johnes, Portela

& Thanassoulis, 2016). Aristovnik (2013), Mikušová (2015), Vítek &

Martinková (2015) found relatively high efficiency in tertiary education

within new Europe member states, however, technical efficiency in

secondary education differ across the great majority of Europe

countries (Aristovnik & Obadic, 2014). In consideration of education

efficiency policy activity plays a significant role in like manner. Afonso

& Aubyn (2005) investigated strong relation between inefficiency of

adult educational attainment with economic growth measured by

gross domestic product (GDP) per capita. This connection is

significantly correlated which means that wealthier environment is

important conditions for a higher student performance within positive

and significant implication (Hanushek & Luque, 2003).

Financial Literacy and education support

The total public expenditure on education in most of European

countries are allocated to secondary level of education representing a

substantial proportion of GDP per capita in comparison to other

educational level. Aristovnik & Obadic (2014) shed light on different

level of public expenditure on education from country to country in

consequence of varied length of compulsory education and suggest

rationalizing public secondary education spending redirect of

excessive resources to the tertiary education sector. Many institutions

(as public as private) increase support in the field of financial literacy

education whereby the ensuring efficiency of those programs features

one of the key factor to sustainability development of financial

knowledge and skills of students in every age group (González-

51

Sánchez & De Los Ríos Sastre, 2014). As abovementioned importance

of parental attainment to student‘s outcomes, Afonso & Aubyn (2005)

emphasize that as the children of today are the parents of tomorrow,

policy makers should tend to reduce school dropout rates and to

increase youth education length, which can lead to positive effects on

education system of given country in the future. According to

Kirjavainen & Loikkanen (1998) and Afonso & Aubyn (2005) efficiency

in the education sector particularly depend to family economic

backgrounds and education attainment of parents most demonstrative

in richer countries – variables beyond the control of governments in

short and medium period. Another authors (Barro & Lee, 2001;

Aristovnik & Obadic, 2014; Atkinson & Messy, 2012; Jorgensen &

Savla, 2010) confirmed the higher level of parental education, the

better efficiency of secondary education provision in a country.

Personal savings rates are alarmingly low and shift of substantial

policy responsibility in funding of retirement to individuals have

amplified the calls for personal financial education (Starček & Trunk,

2013; Peng et al., 2007). On the present, there are evident activities in

a support of financial education especially from the European

Commission (EC) side. The EC issued “The Communication on

Financial Education” report. This report explicitly states economic and

social advantages of a higher level of FL as well as fundamental

principles of financial education control according to the chosen

procedures (European Commission, 2007). The EC support led to

implementation of various tools in a more complex financial world in

order to increase FL of students. The FL standards represent one of

those tools that are implemented in institutions of all levels of

educational system, thus students may obtain higher financial skills (as

for instance in the Czech Republic, where the National Strategy for

Financial Literacy was issued in 2010). The primary platform is formed

by economical categories, such as money and transactions, financial

planning and management, risks and rewards, economic terms,

consumer rights and responsibilities, etc. in spite of the differences in

a content of educational standards in the individual countries (OECD,

2016a).

52

In Slovakia, the National Standard of FL (Version 1.0) was formed by

the Ministry of Education, Science, Research and Sport of the Slovak

Republic (MESRS) and actualized in 2013. Bank of financial literacy,

Open-book of Financial Literacy, etc. were active in obtaining other

resources (MESRS, 2014). The financial standards had a dual role – they

determined necessary knowledge, skills and experiences for

educational staff and students, as well. Research studies from abroad

focus on process and result trajectories in the FL regulation within

particular countries in recent years (Klapper et al., 2015; Rasoaisi &

Kalebe, 2015; Kozina & Ponikvar, 2015; Nano & Cani, 2016).

Level of FL around the world can be can be affected by many factors,

which are not equally important in all participating countries and

economies. Differences in FL can be associated with gender, parental

background, educated system or economic status in country.

Figure 1. Relation of financial literacy, GDP per capita and expenditure

on education in given country.

Source: own processing according to PISA and OECD data

53

By using available data from PISA and OECD statistics we put to the

relation scores of FL of the year 2012 which were officially released on

July in 2014, because findings about data of PISA 2015 will be

available later in May 2017, GDP per capita as the main factor of

economic growth in US Dollar since year 2015 or latest and

expenditure on education as % of total government expenditure since

year 2013. Indicator expenditure on education is represented by

different size of points. The bigger point is, the more financial

recourses given country spend on education. Figure 1 shows

relationship between student’s score on FL assessment, GDP per capita

and expenditure on education. Living in a rich country does not seem

as a strong implication on the FL scores of 15 years old students. We

cannot say that higher expenditure on education will cause higher

level of FL of students as well (p > 0.05). While higher GDP per capita

is associated with higher level of FL, the plot in Figure 1 indicate that

lot of countries with lower value of GDP per capita (Latvia, Poland,

Czech, Estonia) perform better level of FL than countries with higher

economic growth as Italy, France or United States. This implies that

students and youth in countries with advanced economy do not

achieve higher score of FL than students in poorer countries. This is

determined by a number of socio-economic, political and cultural

aspects. A detailed examination of them requires access to more

structured data. Those conditions also create a platform for a

subsequent research.

In this context Lusardi (2015), OECD (2014) indicates that following

independency simultaneously underscores the importance and

relevance of having a well-functioning educational system or its

efficiency. Results of research study of Dragoescu (2015) show positive

relation between GDP per capita and the number of students with

higher education and no connection between GDP per capita, size of

students respondents and public education expenditure. In one of the

OECD study (French, French & Li, 2015) was found out negative impact

of gender on public expenditure on education and positive effect of

individualism and long-term orientation.

54

Hence, authors emphasize relevance of cultural dimensions on

education expenditure and country differences of FL. Examination of

regional, national and international disparities and discrepancies in the

financial literacy of special populations is in the recent years the

subject of interest to many research teams, as well as polemic and

debate. It is related to process of globalization and related changes in

the financial markets, the increasing internationalization of economic

and business processes, etc. In Slovakia, there absents complex

research and expert studies within given issue in spite of their

importance in strategic concepts’ formation, planning of educational

processes, and also creating of relevant policies. The above mentioned

facts have made us more interested in a close and deep examination

of the level of FL and disparities at selected universities, and in the

confrontation with the partial results of international research. The

principal aim of this research was a comparison of levels of financial

literacy at both input and output, i.e. between the first year

undergraduates and those graduates who are in the final year of their

studies and a research of causal links, which provide a list of

differences in horizontal (researched universities) and vertical (other

categories) FL dimensions. The next chapters provide a detailed

description of methodology and research results.

Methods

The survey of FL level was realized during the following period,

December 2015 until March 2016. There participated 496 students

from three selected universities in Slovakia: Faculty of Economics,

Technical University of Košice (EKF TUKE), Faculty of Management of

University of Prešov in Prešov (FM PU) and Faculty of National

Economy of the University of Economics in Bratislava (NHF EUBA).

These Slovak universities have been active for many years and they

provide various economically oriented study programs. They also

realize research activities besides those educational ones. Table 1

shows a structure of research sample.

55

Table 1. Research sample according to sex and university level of

respondents.

Faculty/

University

Frequency of survey respondents

1st year of Bachelor study 2nd year of Master study Overall

Frequency Men Women Total Men Women Total

EKF TUKE 46 89 135 33 60 93 228

FM PU 18 39 57 11 25 36 93

NHF EUBA 47 81 128 21 26 47 175

Total 111 209 320 65 111 176 496

Source: authors processing

The written form of survey by means of structured questionnaire that

consisted of 54 questions was used in order to collect the necessary

data. Questionnaire structure was divided into three types of

questions so it also considered key categories of a given issue. The

first type of questions focused on demographic data of respondents,

the second type of questions was related to practical tasks which

focused on verifying the level of FL and confirming, and/or rejecting

the hypothesis that emerges from prospect theory. The last type of

questions consisted of those that concentrated on financial situation

and financial behaviour of a respondent. The survey questionnaire

included closed questions that had either a character of multiple

choice questions or questions with rating scales (7-10), when

respondents could convey their attitudes. Rating questions were

related to financial behaviour of respondents, while focusing on their

self-perception.

The targets as well as character of a survey were determined by a form

of questionnaire and questions’ concept. The students’ FL was

evaluated by 7 specific and practical (mathematical) tasks with

multiple choices and one correct answer on the basis of content point

of view. In the research, there was applied a verified and

internationally respected procedure, which has also been used by the

Global Financial Literacy Excellence Center (GFLEC) at the Washington

56

university in the U.S. (e.g. Lusardi & Tufano, 2009). We analyze

correlative data dependence of selected variables and their intensity

by using Logit model. The research line is defined by a few

hypotheses, and a goal is to explain the level of respondents’ financial

literacy in terms of their sex, high school background, university study

program and self-perception in terms of math and financial skills.

H1: Level of respondents’ FL connected to respondents’ sex.

The primary source of this hypothesis was a research made by an

international study, PISA (2012, in cooperation with GFLEC). This

research made a conclusion that male respondents are more

frequently ranked at higher, but also lower levels of FL evaluation

(wide variance of achieved FL level). Female respondents reached

average results in this research. Our research primarily focused on a

possibility of such differentiation between sexes in terms of FL in

students of specific economic faculties in Slovakia.

H2: Level of respondents’ FL defined as an input of students,

which is connected to high school type.

Many high school study programs offer different knowledge of FL. On

the other hand, FL is inevitable in daily life of each individual who

becomes a client, customer, debtor, creditor, etc. In this context, each

individual should have a certain level of FL. The differences presumed

by this hypothesis are of main interest of this research, while

accepting a fact that only a part of population continues in the

university studies.

H3: Level of FL is increased by completing economic study

programs at the university.

The individuals achieve the highest level of education by completing

the university study programs also in economic field. It is estimated

that those individuals who did not complete any economic study

programs, or are at the beginning of such studies have significantly

lower level of FL than those respondents who are about to complete

their economic studies.

57

H4: Level of FL connected to respondent’s self-perception of

math skills.

Math is a basis of as various disciplines as financial literacy concept.

Financial skills are not identical with skills in math and vary by

individuals. In terms of PISA skills of FL relate with math skills, but on

the other hand high mathematical knowledge do not have to indicate

higher level of FL as well. Individuals should to absorb as knowledge

and skills of finance and economy as math knowledge which

contribute to understand of common financial issues. We consider

variety of respondent’s self-perception in math skills comparing with

their financial skills.

H5: Level of FL connected to respondent’s self-perception of

financial skills.

As in the previous case we focus on respondent’s self-perception in

relation to financial knowledge. We analyze whether the respondent’s

internal opinion of his financial skills differ from the math one. We

examine relation between respondent's financial knowledge and level

of FL achieved in survey.

We run binary logistic regression which is a special case of the

generalized linear model. In binary logistic regression the dependent

variable is binary, thus has a dichotomous nature. In binary logistic

regression, dependent variable does not need to be normally

distributed.

Further, this method does not require a linear relationship between

the dependent variable and the repressors. Moreover, this method

overcomes many of the restrictive assumptions of linear regression.

Binary logistic regression measures the odds of occurrence of studied

phenomenon with probability π, against nonoccurrence of given

phenomenon with probability 1- π. The part of these two values

represents the ratio of the chances that explained variable reaches one

out of mentioned category (occurrence vs. nonoccurrence).

58

The odds of occurrence of the phenomenon is given as following:

. Then, the probability is expressed as . As

mentioned above, logistic regression is based on the general linear

model, in which the asymmetry of values is removed by

transformation of the model by natural logarithm. Logit is then

defined as with the domain (- ). Logit

model is than can be expressed in its basic shape as:

(1)

where are the parameters of the model and is the

conditional mean value of the response variable (Řezanková, 2011).

Logistic regression estimates the probability that the phenomenon

occurs. We assume that the phenomenon occurs when the probability

is higher than the chosen threshold called cut point. Cut point is

usually set to 0.5. When this value is lower, we assume that the

phenomenon does not occur (Kráľ, 2009).

Results

Practical tasks used in survey questionnaire which enabled to evaluate

the level of students’ FL in selected economical faculties were

thematically-oriented to financial skills and abilities of respondents in

simple and complex interest rate, inflation, influence of interest rates

on particular types of investments. In our analysis, the dependent

variable is financial literacy, or financial illiteracy of students.

Dependant variable takes value 1 in case when subject is financially

literate and value 0 in case, when subject is financially illiterate. The

level of students’ FL was evaluated by 7 specific and practical

(mathematical) tasks with multiple choices and one correct answer

intent on basic financial skills. Financial literate person is that kind of

respondent who answered correctly at least 4 practical queries, i.e. an

absolute majority of these tasks aimed at FL. Our dataset consists of

59

496 observation, where 320 were females and 176 were males. Basic

descriptive statistics on our dataset is presented in Table 2.

Table 2. Descriptive statistics, distribution of financial literacy.

Financial

illiterate

Financial

literate

Gender

Men 81 95

Women 111 209

Year of study

First year of Bachelor study 144 176

Last year of Master study 48 128

Highest level of education attained

Grammar School 86 119

Business Secondary School 43 48

Hotel academy 6 4

Secondary vocational school 9 5

Self-perception

Good in math skills 77 127

Good in financial skills 67 114

Source: authors processing

Independent, explanatory variables are:

Gender nominal variable reaching two categories: males and

females

Education categorical variable acquiring six categories: high

school, business academy, hotel academy, secondary technical school,

conservatory, bachelor degree

Year of study categorical variable acquiring two values: first year of

study and fifth (final) year on study at the university

University categorical variable indicating in which institution one

60

is studying. Here we consider three faculties: The Faculty of Economics

at the Technical University of Kosice, The Faculty of National Economy

at the University of Economics in Bratislava and The Faculty of

Management of University of Prešov in Prešov

Self-perception binary variable with two possible outputs, taking into

account math and financial skills and indicating respondent’s self-

perception. Variable takes value 1 in case that subject find himself

mathematically well skilled or well skilled in terms of financial literacy.

Otherwise variable takes value 0.

Results of logistic regression are presented in Table 3. Model as a

whole is statistically significant and overall percentage of cases that

are correctly predicted by the model is 64.3 %. Eyeballing Table 3

indicate, that expect variable Gender, no other variable has a

statistically significant impact on financial literacy of our sample.

Concerning Gender we can conclude that being a male diminish the

odds of being financially literate by 35.2 % compared to females, and

while controlling for other variables in the regression.

Table 3. Logistic regression

B S.E. Wald df Sig. Exp(B)

Gender (male) -.433 .194 4.967 1 .026 .648

Education 2.659 4 .616

business academy .444 .284 2.455 1 .117 1.559

hotel academy .317 .737 .185 1 .667 1.373

secondary technical school -.061 .578 .011 1 .916 .941

Year of study (first) -21.706 40214.866 .000 1 1.000 .000

University .721 2 .697

NHF EUBA -.077 .273 .078 1 .780 .926

FM PU

Self perception

math skills

financial skills

-.184

0.076

0.206

.217

.215

.223

.720

.125

.850

1

1

1

.396

.724

.356

.832

1.079

1.229

Constant 22.398 40214.866 .000 1 1.000 5.335E9

Source: authors processing

Studied model as a whole defined gender as a statistically significant

61

variable. Concerning compound interest and risk diversification, men

of all respondents in our survey are less likely to respond correctly to

the question compared to women. Generally, fewer men at all three

Slovak economic faculties can answer all questions correctly compared

to women. But, for instance, if we look deeper on students at EKF

TUKE, male students of this faculty achieve higher level of FL than

female students. For instance, where only 10.13 % of male

respondents are financially illiterate, while this number is in female

respondents much higher, 30.87 %. Interestingly, the analysis does not

prove statistically significant dependence (p > 0.05) of year of study

between the first year undergraduates and those graduates who are in

the final year of their studies. Comparison of levels of financial literacy

as a whole at both input and output achieved comparable worth.

Although the results of binary logistic regression showed no

significance of this variable throughout the study sample, among the

faculties themselves included in the questionnaire we can find certain

differences. A frequency rate of financially illiterate students from EKF

TUKE was lower at the end of their studies (9.68 %) as at the beginning

of their studies (33.33 %). Similar connection was found out at NHF

EUBA, where a rate of financially literate students of the first year

(53.13 %) was lower than in students of the last year at particular

faculty (72.34 %). Logical connection was found in two universities, in

Košice and Bratislava, while analyzing the relation between FL level of

respondents and level of their studies at the university. In both cases,

the statistically significant dependency was confirmed (p < 0.05),

which means that financial knowledge depends on completed level of

study at particular university. However, this validity was not confirmed

at FM PU (p > 0,05), where the rate of financially literate first-year

students at FM PU forms 31.58 %, while only 27.78 % of the last year

students are financially literate. Business Secondary School in

comparison to Grammar School, or other types of high schools teach

many subjects of economy and they provide primary or broadened

knowledge of finances and economy for their students.

62

Therefore, it was supposed that respondents who attended Business

Secondary School would reach a higher level of FL. The second one of

interesting findings was rejection this hypothesis, we do not recognize

any statistically significant dependency. Based on results of our

empirical research we cannot unambiguously express validity of the

assumptions H4 and H5. In both case of student’s self-perception of

math and financial skills prevail findings that not confirm their

interdependency (p > 0.05). Slovak students thinking their

mathematical or financial knowledge are good in fact did not reached

any proper level of FL (13.6 % and 22.3 %) in survey and these

students may overestimate their skills.

On the other hand there was evidence of many cases when students

underestimated their knowledge in contrary to their higher level of FL

(35.7 % concerning math skills and 38.3 % financial skills). We take a

look at the relation of university students to work activities. Each

conducted job in many forms set differentiated demands that help

shape and develop individuals with relevant work habits. Work habits

such as an effort to meet deadlines, work attendance, employment

relationships or communication skills may lead to exercise the

influence of financial decisions in the light of financial or banking

operations. We found that 54.23 % of students work in a full-time or

part-time job. Between students prevail part-time job regardless of

gender. In accordance to results of testing we did not recognize any

dependency between level of FL and work status of students (p >

0.05). The share of financially skilled students without work activity

and financially skilled students working while studying is comparable.

Discussion

Nowadays, FL represent a global issue of today with significant

consequences as on individuals and his family budget as on balanced

economic growth in given country (Fabris & Luburic, 2016) and it is

necessary to make sense of the funding policies on education

programs to increase of their efficiency and equity (Johnes, Portela

&Thanassoulis, 2016). This study deals with financial behaviour of

63

respondents and their skills in terms of financial literacy concept of the

selected economic faculties in Slovakia. The research line is defined by

a few hypotheses linked to level of students’ FL, and a goal is to

explain the level of respondents’ FL in terms of their sex, high school

background, university study program and relevance of self-perception

concerning math and actual financial knowledge.

The results of presented research show gender differences in level of

FL, with male students diminishing the odds of being financially

literate by 35.2 % compared to female students. In deeper analyze in

light of EKF TUKE university we found out contrary results where men

achieved higher score points in FL than women. These findings where

women are more financial literate compared to men are consistent

with study of Gary (2013). More the contrary majority of studies

(Bottazzi & Lusardi, 2016; Lusardi & Mitchell 2011; Lusardi & Mitchell,

2005; Prast & Soest, 2016) show significantly higher male success

concerning financial knowledge than female one. In study of OECD

(2016b) 19 of the 30 participating countries show substantial

difference between the proportion of men and women reaching the

minimum target score on the questions aimed at FL. Results of this

study indicate lower level FL of women then man after controlling for

age, country level differences or education. Dependence of year of

study between input and output is, surprisingly, not significant. We do

not detect important impact of university attendance on level of FL

between Slovak students.

Comparison of levels of FL as a whole by the first year undergraduates

and those graduates who are in the final year of their studies achieved

comparable worth. Student’s self-perception of math and financial

knowledge is relatively realistic. Major proportion of financial literate

students (60.62 %) considered themselves to have good math skills.

Concerning financial knowledge more than 60.32 % of financial

literate students suitable evaluated their skills in terms of inflation,

compounding rate or diversification. These findings are consistent

with results of study OECD (2016b).

64

Interestingly, we do not recognize any statistically significant

dependency of types of high schools on student’s FL. University

students from Business Secondary School that provide broadened

knowledge of economy and finance do not prove higher financial

knowledge compared to other types of high school in Slovakia. In

relation to work habits and FL there is no dependency. The proportion

of financial literate students without work activity compared to

students working while studying is comparable. The findings of

presented research indicate comparable level of FL between university

students at first year of Bachelor study with students at the end of

their Master study. Many students struggle with basic concepts of

financial issue such as inflation, diversification or compound interest

and point up the problem of applying numeracy skills in a financial

context. FL is crucial element of financial decisions on daily basis not

only for students but also children, adults or elderly and help them to

manage their household budget as well as react to events leading up

to influencing their financial well-being in the future.

It is also very important to present limitations of the survey besides

the given comparable limitations of the research. One of research

limits was uneven representation of respondents at researched

faculties. Three selected faculties of economy were examined due to

procedural and technical difficulties of a given survey. This focus limits

the outputs’ generalization of the whole Slovak population.

Conclusion

Enhancing financial skills of as youth as adults is increasingly brought

to common people’s attention and there are evident activities of policy

makers aimed at the support of financial education in many countries

of the world. The main goals of this study is to compare levels of

financial literacy at both input and output of the selected economic

faculties in Slovakia, i.e. between the first year undergraduates and

those graduates who are in the final year of their studies in terms of

their sex, high school background, university study program and self-

perception of math and financial knowledge. The written form of

65

questionnaire was chosen due to given research targets and form of

data collection. Results confirmed a significant gender differences in

level of FL where women achieved higher scores of financial skills

compared to men. Interestingly, here exist no dependence of year of

study between input and output. Level of FL among first year students

of Bachelor study was comparable with students of Master study and

do not prove any significant enhancing of financial skills acquired

through the graduation from university study program at economic

faculties.

Further, this study does not recognize any statistically significant

dependency of types of high schools on student’s FL. As is clear from

international studies, this research indicate that while personal skills in

mathematics affecting the real level of FL and which students perceive

as important, on the contrary the assumption have not to be valid. The

results of presented research provide important information for policy

makers who should reflect on present status of this issue in Slovakia,

reveal research potential in adjusting FL monitoring system within

Slovakia and develop a platform for efficient concepts of financial

education in Slovakia. Such support of financial education may lead to

improving financial decisions of individuals. Last but not least,

research initiation in FL area and its support from state will also

support formation of international comparison platform and

development of international standards in financial education field.

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71

ISOCHIMICA FACTORY AS A “PARADIGMATIC CASE

STUDY” OF INDUSTRIAL RELATIONS IN THE SOUTH

OF ITALY.

Anna D’ascenzio6

Facoltà di Scienze Della Formazione, Università Suor Orsola Benincasa

di Napoli, Via Suor Orsola Benincasa n. 10, 80121 Naples, Italy

annadascenzio@libero.it

Introduction

Isochimica is a disused factory situated in the periphery of the town of

Avellino (Campania, Italy), which, from 1982 to 1988, was

commissioned by the Italian State Railway Company Ferrovie dello

Stato (FS) to remove asbestos panels from train carriages. In spite of its

very short period of activity, the factory caused massive environmental

damages in terms of pollution as well as a variety of asbestos-related

pathologies affecting the local population. At present time, most of

the workers previously employed in the factory have contracted

asbestos-related pathologies and are still struggling to claim basic

rights such as early retirement and the recognition of work-related

illness. Twelve of them have already died7. Borgo Ferrovia, the site of

6 Anna D’Ascenzio graduated her doctoral studies from the Facoltà di Scienze Della Formazione, Università Suor Orsola Benincasa di Napoli in 2017. Currently she works as sociologist at the URiT (Unità di Ricerca sulle Topografie sociali). She defended her thesis on Shopping Malls as Heterotopic space. In her research she focuses on Shopping malls have become a ubiquitous marker of urban living, becoming centres of human activity. She published several articles on the topic of governance and disaster South Question. 7 Designated institutions have not provided official data about the number of asbestos-related deaths and pathologies in the city of Avellino. Hence, only partial information about the number of deceased or ill workers is available, as the researchers have lost traces of many of the 330 workers employed in the Isochimica factory, who came from different cities of the Campania Region. Most of the former workers have been diagnosed with between 8.000 and 10.000 asbestos fibers in lungs while 9 of them have already died, according to official estimates. In addition, cancer rates in the neighborhood that hosted the factory have significantly increased. In the last 30 years,

72

the closed factory, has not yet been decontaminated and hundreds of

cubic meters of asbestos dust are still abandoned in the open air in

the proximity of schools, sports courts and houses. The bare structure

of the asbestos plant is located in an interstitial zone the Industrial

Development Area (Asi) of Pianodardine, a series of recently built

settlements residential units and an almost deserted rail station. The

particular spatial configuration of the neighborhood suggests the idea

of a failed urbanization, which could be read more generally as the

symbol of the clumsy attempt at economic restructuring that took

place in the town after the 1980 earthquake. Likewise, the ruins of the

industrial structure financed by State funds for reconstruction can be

seen to reflect the image of a development without foundations (Di

Meglio 1997). However, notwithstanding the absence of an urban

project, the management of a catastrophe – in this case the

earthquake in Irpinia - has been a way to experiment a specific form of

disaster capitalism (Klein 2007). With Klein’s thesis, i think free market

ideas rely on crises. In a time of a “natural disaster, war, or military

coup, people are disoriented and confused and fight for their own

immediate survival or wellbeing, setting the stage for corporations,

politicians, and economists to push through trade liberalization,

privatization, and lower public spending without facing any

opposition. According to Klein, “neoliberal” economists welcomed

Hurricane Katrina and Indonesian tsunami as opportunities to erase

past policies and introduce new free market models.

Hence, post-earthquake Irpinia could be interpreted as a

“paradigmatic case study” to shed light on the strategies of capital

extraction from the people and the environment in crisis

circumstances. As a matter of fact, the process of management of the

population at risk has set the basis for a process: “by which the

uncertainties that are typical of potentially hazardous situations can

be minimized and public safety maximized. The goal is to limit the

costs of emergencies or disasters through the implementation of a

only 200 workers (and none of the inhabitants of the neighborhood) have been subjected to health checks and medical examinations. Just a handful of those workers have been certified partial medical disability (up to 8 %).

73

series of strategies and tactics reflecting the full life cycle of a disaster,

i.e., preparedness, response, recovery, and mitigation” (Drabek, 2004,

p. 1).

In Irpinia, the management of the state of calamity after the

earthquake became a practice of government patronage. Patronage

can be defined as an informal contractual relationship between

persons of unequal status and power (Silverman, 1965, p. 296). She

with described the spread of patronage practices in the Italian South

in relation to familism (Banfield, 1958), defined as the tendency of

Southerners to favour the family group.

A short genealogic Irpinia earthquake8

In the context, Isochimica is a “paradigmatic case study” of patronage

in South of Italy; it was used as a disciplinary technique, which aimed

at disenfranchising labour unions. More specifically, the establishment

of a patron-client relationship allowed the experimentation of new

labor practices (Piattoni, 1988), such as the introduction of

subcontracting and the outsourcing of a part of southern Italian

industry. Starting from these assumptions, the article investigates the

construction of consensus practices achieved by institutional actors

throughout the different stages of the establishment of the factory. It

also examines anomalies in the FS’s contractual employment and their

effects on the recruitment of the ex-workers. Several anomalies can

also be found in the management of the judicial proceedings and the

implementation of sanitary measures. In 1983, a few months after the

opening of the factory, a group of fifteen workers sent a complaint to

the attention of the local Prosecutor in which they denounced the lack

of enforcement of safety measures. It was deliberately ignored, while

the sanitary experts appointed by the local Healthcare agency (ASL)

attested that the factory’s safety systems were regular and did not

8 The Irpinia earthquake took place on 23rd November 1980 (MS=6.9) at 18 h 34 m UT.

This earthquake was one of the strongest events in 20th century Italy. It caused the death of about 3000 people, total destruction of 15 towns and severe damage within a radius near 50 km.

74

authorize controls on the state of health of the population of Borgo

Ferrovia. “The health of Borgo Ferrovia” was at risk already in 19849. A

study of the Sacro Cuore University of Rome showed that workers and

local residents were facing high risks as they were exposed to visible

asbestos dust. Moreover, a municipal ordinance of September 15, 1988

prescribed the temporary closure of the factory, but asbestos removal

activities continued for a further three months until December 15 1988

(Osservatorio Nazionale sull'amianto. Comitato provinciale di Avellino,

2011, p.4). It was only in 1989, after a new complaint filed by the

workers of Officine Grandi Riparazioni ( ORG ) of Foligno, that a

magistrate from Florence Beniamino Deidda10, permanently put an

end to all clean up asbestos in the city of Avellino. Among those under

investigation is current mayor of Avellino for not having ensured the

safety of the factory site since 17 June 2014. Other people under

investigation. initiated by prosecutor Cantelmo, about 237 people

including the ex- workers and their families have been identified as

the injured party. Moreover, five of the former managers of the factory

and several members of the local administration will be prosecuted for

producing fraudulent sanitary certificates for the disposal of

asbestos11

.

On closer inspection Isochimica appears to be a space of exception

(Agamben, 2005), in which a differential management of the

populations has been carried out. As victims of a disaster and South

space, those populations became object of a double social

exploitation. In this process, economic exploitation turned into

symbolic exploitation and the fact of “being southerners and victims

of an earthquake” (Giuseppe, ex Isochimica worker and ex

9 Those under investigation is current mayor of Avellino for not having ensured the safety of the factory site since 17 June 2014. 10 The interview conducted by Beniamino Deidda contain a detailed description of the different techniques of asbestos disposal that were used in the factory: most of the toxic material was buried in 4 to 5 meters deep holes in the ground of the factory, the remaining part was either mixed with concrete before being buried or placed in plastic bags and transported to external dumps on trucks. 11 This investigation has marked a clear shift in the history of the Isochimica case, because before 2011, the only person who had been held responsible for the environmental disaster was the CEO of the factory, Elio Graziano. He died in 2017.

75

representative Labor Union, 5 July 2015) became synonym of a

“subaltern people”, which led to the acceptance of a condition of

subaltern workers12

. It became even more powerful as a result of the

process of victimization of the factory workers themselves. The facts

exposed in this article emerged during the phases of genealogical

reconstruction of the factory. Moreover, it is worth notice noting that

the activity of historical and political reconstruction, combined with

the biographical impressions of the ex-workers, has subverted the

portrayal of an inherently backward South.

Method

This study was conducted between 2011 and 2015 by the researchers

of URiT (Research Unit in Social Topography) at the Suor Orsola

Benincasa University of Naples. At an early stage of the research, we

reviewed the national and international scholarly literature13

on this

subject and, at a later stage, collected and analyzed primary sources.

Our aim was to identify the main mechanisms of the production of a

discourse “concerning what we term asbestos biocide”. More

specifically, we examined editorial narratives, portrayals, and

descriptions in the national and local mass media production, political

speeches, on-line blogs, and readers’ letters to newspapers. In the

subsequent stage of participant observation, we examined editorial

12 See Spivak, 1988. A subaltern is a person holding a subordinate position, she draws on the term's nuances. It has particularly rich connotations for the Indian subcontinent that viewed imperialism from the ambivalent position of the' subaltern functionary in the complex colonial hierarchy, caught between detested superiors and feared "natives. The Italian t theorist Antonio Gramsci applied this term to the unorganized masses that must be politicized for the workers' revolution to succeed. In the 1980s the Subaltern Studies Group (a collective of radical historians in India with whom Spivak maintains ties) appropriated the term, focusing their attention on the disenfranchised peoples of India. The "subaltern" stands in an ambiguous relation to power-subordinate to it but never fully consenting to its rule, never adopting the dominant point of view or vocabulary as expressive of its own identity . 13 For short international reviewed, you can see: Drabek, 1986; Baker, 1991; Mileti & Fitzpatrick, 1993; Hoffman & Oliver-Smith, 2002; Elliott & Pais, 2006; Giroux 2006; Fassin & Pandolfi, 2010; Benadusi, 2012, 2013. For earthquake irpinian case studies, you can see: Bevilacqua, 1981; Chubb, 2002; Dickie et al., 2002; Simonetti & Ventura, 2011; D’Ascenzio 2015; Ferraro, 2015; Saitta 2013; Petrillo 2015; 2017.

76

narratives, portrayals, and descriptions in the national and local mass

media production, political speeches, on-line blogs, and readers’

letters to newspapers. In the subsequent stage of participant

observation, we attended meetings, assemblies, and protests set up by

the population. Furthermore, we have traced the biographies of direct

witnesses with more than a 20 in-depth interviews and provided

documentation of key events through pictures, audio, and video files.

The series of events analyzed in this article are spatially and

numerically limited, from a quantitative point of view. However, this

has never been seen as a methodological pitfall by the researchers

Contrarily, the use of a qualitative methodology has allowed a

meticulous observation and analysis of the use of discursive

techniques in the construction of racial differentiation of the plebs and

the Southern Question (Gramsci, 2011). Moreover, in-depth interviews

have helped retrace the historical background of the events. In the

same way, the biographies collected in the course of the research have

been a precious tool for the reconstruction of the political and cultural

post-earthquake discourse. Following the ex-workers’ biographical

paths helped us understand their shared culture (Bertaux, 1996), the

slow and complex formation of a common conscience, the hesitant

development of their individual and collective claim strategies and the

problematic relationship with the inhabitants of the neighborhood,

who proved to be mostly indifferent, if not openly hostile to the

protests of the workers.

Results

The Isochimica case could be interpreted as an industrial experiment

that has been conducted in the era of late liberalism in the

economically peripheral region of Irpinia, which saw the dramatic shift

in the 1980s from a rural economy to an “emergency-driven”

economy. One of the main characteristics of the development of the

asbestos industry was its use of experimental forms of flexible labor.

For a long time our Chief Executive Officer said that FS: “would give

different tasks other than asbestos removal, such as mechanical and

electromechanical repair. He repeated that we had to bet on coach

77

fabrication if we wanted to keep on working” (Giovanni, ex former

Isochimica ex-worker Naples, July 5 2015). In this context, flexibility –

understood as the production of new processes of labor management

– was inscribed in the wider strategy of privatization of FS (Nationalthe

State Railway Company). The outsourcing of some of the maintenance

activities exacerbated the crisis of the Fordism union system, leading

to the weakening of more politicized areas in the North of Italy and

the establishment of new industrial relations in the South. In this

scenario, the installation of the Isochimica plant after the earthquake

of 1980 was a favorable opportunity for the local establishment –

which was particularly active in the production of discourses and

knowledge on the crisis of the local economy – to introduce “modern”

plans of industrial transformation concealing the high risks connected

with the treatment of asbestos. As a matter of fact, the Municipality of

Avellino granted permission for the sole activity of iron waste

treatment (Art 48 del D.P.R. 303/56), while the USL 4 presided over the

regularity of the disposal processes. The State and alibis to relieve

itself from any responsibility in Irpinia's environmental disaster.

The Earthquake was immediately represented by the media as a tragic

but occasion to intervene in this part of "South Italy". For instance, in

1987, the Italian Centre of Study on Social Investments (Censis,1988)

highlighted that seven years after the earthquake, Avellino was still

characterized by one of the lowest per capita incomes in the country

(less than three million Lire), a significant number of inhabitants

dependent on state pensions (106 thousand, of which 71 thousand

disabled), an incredibly high rates of unemployment (34 thousand)

and numerous homeless people. The earthquake created a state of

crisis that fostered claims for a new territorial development14

. On the

14 They ware achieved through extraordinary legal measures: Legge n. 219 del 14

Maggio 1981 - Ulteriori interventi in favore delle popolazioni colpite dagli eventi sismici del Novembre 1980 e del Febbraio 1981; Legge n. 140 del 16 Aprile 1981 – Misure eccezionali per la tutela e lo sviluppo dell'occupazione nelle zone terremotate della Campania e della Basilicata. The rule of law becomes very profitable both for the political powers and for the development of business. This generates a new local ruling class that manages to conquer a significant position, even on a national level, through friendship circles that include politicians, businessmen and even police officers,

78

one hand, this emergency legislation had the effect of multiplying the

request and distribution of public money and, on the other it reshaped

the territory (Di Costanzo & Ferraro, 2013). The subsequent

descriptions of Irpinia as a case of heterotopic Italian space (Petrillo,

2015) inhabited by a population that struggled between

unemployment and chronic underemployment and lived in spatially

isolated areas represented a strong rhetorical resource, which helped

articulate the discourse about the crisis and allowed the naturalization

of speculative interventions at the same time. In fact, the process of

“venture urban” was managed by the powerful of “localist lobby”

(Becchi Collidà et al., 1986) composed of prominent members of the

national political establishment. It included: Christian Democrat party

(DC); Italian Socialist Party (PSI) and Italian Communist Party (PCI). In

about twenty years of reconstruction, this region endured numerous

cases of deception and fraud, which led to the decline of several areas

(such as Calabritto e Conza) and businesses. It is worth noting that

after almost 1,000 billion lire of public investment in new enterprises,

only 2.687 of the anticipated 4.135 jobs were created. Borgo Ferrovia

was the result of a deal between the bank system, the Ministry of

Industry, and a private firm protected by the DC party and PSI.

Interview about organization of "new" Italian State Railways and

“new” form of industrial relations

Pietro, an ex-stationmaster of the FF.SS company, who was employed

in the train station of Avellino at the time those events occurred,

exposed his colleagues by publicly stating that: “They allowed

contaminated vehicles to circulate on the station rails” and explaining

that, in the Isochimica affair, “people’s lives were exchanged for profit”.

Pietro is currently volunteering for a labor union. In the course of our

interview, he took an old piece of paper out of his pocket and said:

“this is a copy of my first interview, it was published on a local

newspaper”. Then, he started reading:

members of the armed forces and the intelligence services as well as the national bureaucracy.

79

Before the opening of Isochimica, the carriages of the FF.SS

company were sanitized directly in the station, just a few dozens

of meters away from the post-earthquake houses, where many

employees were working and a lot of travelers and residents

were stopping by. At first, we thought the opening of factory

could be a sort of redemption from the earthquake situation, a

way to find a job and make some money. Those carriages were

sent to us in light of the fact that we were the earthquake

victims and we needed new jobs. I remember our lunch breaks,

when the employees of the factory shook off their suits covered

with dust before drinking their coffee. It was the only

“preventive measure” at their disposal, but, at the same time,

those asbestos particles were dispersed in the air (Avellino,

November 15 2014) 15

.

Antonio was one of the first employees to be hired by CEO “asbestos

farm”. He was one of the eleven workers who took part in the trial

removal activities. Those trial activities were performed directly on the

railroad and served as a test to prepare a agree between Isochimica

and FS. He described the process as follows:

The Surveillance Office of FS controlled the processing of the

vehicles. In early 1982, we started trial operations on the

vehicles under supervision of FS’ technicians. FS sent us the

vehicles and we tried to disassemble them, remove the asbestos

insulation panels and reassemble them. The job was done

directly on the station rails, in an open-air space (Avellino,

November 30 2015).

The “factory” did not exist, insisted Giuseppe “and worker

market was characterized by patronage recruitment”:

I was twenty years old when I was approached by Graziano

CEO's son. I found myself among other young boys. We all

15 The article was actually a scrap of newspaper. The headline and author could not be identified, while the date, November 5th 1986, was handwritten.

80

thought we had been luckier than the other, none of us could

have imagined what the real motivations were. We were very

strong and we did not know our rights. In other words, we

didn't know anything about trade unions and the regulation of

safety on the work place. Now we know that there is just one

word to describe what our recruitment was about: political

patronage (Salerno, April 30 2015).

Discussion

The agreement between Isochimica and FF.SS. could be seen as a tool

in the hands of the entrepreneurial power that was used at the

expenses of trade unions, especially in light of its function in the wider

process of privatization of FS, a process that brought about the loss of

about 104.292 jobs (Manente, 2007, p. 7)16

. As a matter of fact, the

outsourcing of asbestos removal activities was not successfully

achieved, as OGR was not able to provide the necessary professional

skills. However, this first attempt of outsourcing marked the

introduction of an early form of labor market flexibility in the public

system, which anticipated the process of privatization that would have

interested FS in subsequent years. The outsourcing strategy was

undertaken by FS’ managers in a crucial moment in which the labor

movement was about to question the political establishment,

producing new forms of conflict (Hobsbawm, 1994). In this context,

the introduction of the subcontracting agreement was used as a sort

of concession to conciliate the labor movement. As explained by

Supiot” The sub-contracting of former in-house activities entails

obvious consequences for the workers concerned, who will no longer

benefit from the working conditions deriving from collective

agreements with the company in question and will be subject to

different working conditions under their new employer, which are

usually less advantageous than the ones to which they were initially

entitled” (1998, p. 91).

16 Between 1980 and 2000, the rail sector lost about 46% of its workers in Europe. FS attempted to reproduce the European model of public transport privatization.

81

Conclusion

With its brutal exploitation of the environment and people, Isochimica

anticipated the dangerous nature of the late liberal governmentality in

the South. Patronage hiring became a tool for the incorporation of

workers into the city government and produced a system of relations

aimed at preventing and reducing the conflict generated by the rising

social cost of labor. The establishment of factory in Avellino took place

10 years before the crisis of labor unions. The use of patronage

relations as a form southern welfare anticipates more modern forms of

negotiation. In fact, the southern experience said Marco: “Will be used

as an example in the process of deregulation of unions’ rights”

(Salerno, April 30 2011). This case anticipated some practices of

employment that have become “typical” in southern Italy in the

following decades, especially for what concerns the role of unions. In

this context, flexibility undermined labor unions and produced

subordinate union relations, making access to unions nearly

impossible for the workers. Moreover, unions’ action exclusively

focused on the safeguard of occupational levels, but did not take into

account labor rights protection. Unions gave up their old role of

negotiators to become a sort of job development agencies. In this

regard, the following statement Bruno and Carlo - who were

suspended and laid off several times for protesting in the factory – is

particularly explanatory: “Conflicts in farm not existed. They accepted

everything: overtime job and night shifts” (public speech by Bruno and

Carlo during a meeting of former Isochimica workers, Avellino,

December 10 2012). In this case new industrial relations was

experimented in Irpinia through the new form employment for

subaltern (Castel, 2002). Consequently, the “clientelization” of social

space that characterized the history of Isochimica should not be

interpreted as a catastrophe that compromised development in the

region. It represented, in fact, an effective process of management of

both manpower and territory. In this sense, “scratching asbestos”,

intended as a technique to discipline the bodies of young worker,

pushed the workers to comply with new forms of labor such as

subcontracting and industrial outsourcing. In a few words, the

82

practices of outsourcing experienced by the workers, in and outside

the farm plant, are not to be read as an exception in the

transformation of the local economy (Ferrari Bravo, 2007)17

, but the

sign of a new organizational hegemony, in which a natural catastrophe

allowed the shift of consensus to a new ruling class. In this view, the

patronage became an organizational model in the experimentation of

new industrial relations, which were marked by a strong connection

between institutional interests and industrial powers.

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86

THE IMPACT OF RESEARCH INVESTMENTS AND OTHER

INDICATORS ON THE REGIONAL ECONOMIC

DEVELOPMENT

Petra Szlafkaiová18, Erika Liptáková19

Technical university of Košice, Faculty of Economics, Němcovej 32, 040

01, Košice, Slovakia

petra.szlafkaiova@tuke.sk; erika.liptakova@tuke.sk

Introduction

Regional policy, also called cohesion policy is the most important

investment policy of the European Union. Based on the Strategic

Framework, which are developed for a 7 years period, regional policy

seeks to enhance the economic performance of the EU regions while

at the same time trying to reduce regional disparities through its basic

financial instruments - the Structural Funds and the Cohesion Fund of

the European Union. (European Commission, 2002)

As a result of the EU‘s enlargement by new states was an increase of

inter-regional disparities within the Member States either in their

18 Ing. Petra Szlafkaiová graduated at the faculty of Economics of Technical University in

Košice, Department of Economics and management of public administration. Since 2016 she is a PhD student at the same faculty. Her main field of interest are Smart cities and the methodology of their evaluation. Creating an appropriate model for economic and financial evaluation of Smart city strategies will be devoted deeper in her dissertation work. For the years 2017 and 2018 she is also a member of a research team of the project VEGA: 1/0886/16 Hedonic models of evaluation in the real estate market. Beside that, she dedicated herself also to the university research and measuring their regional impact. 19 RNDr. Erika Liptáková, PhD., graduated from the Department of Teaching general

education subjects: Mathematics - Chemistry at the Faculty of Natural Sciences of Pavel Jozef Šafárik University in Košice (PF UPJŠ). In 2010, she successfully defended her PhD in the field of Mathematics Teaching. Since 2013, she has been teaching at the Faculty of Economics at TUKE as a lecturer of the following subjects: Statistics and Probability, Statistical Methods in Economics, Statistics in SAS and Mathematics I.

87

different economic development, different jobs or income of the

population. As mentioned above, regional policy is a cohesion policy,

and therefore, through solidarity, it seeks to uniform economic

integration of all its Member States, including their regions. Its aim is

therefore to prevent the less developed regions lagged behind

prosperous regions. These goals are ensured through necessary

investments in all of the problem areas. (Svitana, 2006)

The regional policy of the European Union predominantly invests in

energy efficiency, research and innovation, transport, training, support

for SMEs, renewable energy and interregional cooperation. The

guiding principle of EU regional policy is considered to be the

financial solidarity in favour of those less developed regions and social

groups. However, regional policy is not only focused on the less

developed regions, although it may seem from the perspective of

reducing regional disparities. Cohesion policy is not only a selective

support of struggling regions, but it also takes into account the

developed regions, which may experience different needs, such as the

growth of competitiveness and employment. (European Commission,

2002)

In terms of recent theories, cohesion policy should focus mainly on

supporting the creation and development of small and medium-sized

enterprises, to promote innovation in enterprises, encourage

cooperation between companies or firms and universities, while

increasing educational level and creative workforce. Promoting

progressive industries in the region is also what the cohesion policy

should be keen on through cluster initiatives. (Buček, et al., 2010)

Despite all of EU’s constant efforts to reduce the disparities among

regions, they still exists, and therefore the regional policy budget for

the programming period 2014-2020 has increased to 351 billion EU.

At this point it is appropriate to ask: Are these disparities among

regions getting smaller or do they still remain the same?

88

Theoretical framework

According to (Gorzelak, et al., 2015), there are both similarities and

wide disparities among the regions of the Visegrad group. As a result

of the socialist economy forming the economic and social system in

these 4 countries for several decades, some similarities appear

between these regions. These similarities could be for instance

disparities in the level of income, investment and employment or

higher development rate of the capital city regions. On the other

hand, differences can be a result of different culture, system of law or

spatial structures. The regional development and the transformation

closely relates to each other.

Economic growth is considered to be one of the main drivers of

regional development. For the purpose of this paper it is necessary to

define the various economic development indicators monitored by

Eurostat, respectively, each national statistical institute of the V4

countries.

The European Union defines the basic European economic indicators

based on a statistical wizard called Principal European Economic

Indicators (PEEI). These indicators are the primary source of

information for analysis and monitoring of short-term, cyclical

economic developments within individual EU countries. These PEEIs

provide an overview of the economic situation of the country -

includes variables most commonly used by analysts and policy makers.

PEEIs illustrate the main dimensions of the short-term economic

development on both sides (the supply and the demand side), or

provide information about the labour market, external balance and

price and cost developments. (European Commission, 2009)

In 2002, the European Commission established a list of 19 basic

European economic indicators in the following areas:

national accounts,

foreign trade,

89

balance of payments,

prices,

labour market,

business Statistics,

monetary and financial statistics.

These indicators were later in 2007 filled with 7 more other indicators

to improve and increase the efficiency of economic analysis. Today,

therefore, we can talk about 25 indicators of economic development:

Gross domestic product (GDP)

Private final consumption

Investments

External trade balance

Balance of payments — current account

Inflation (Harmonised Indices of Consumer Prices — HICP)

Unemployment rate (total, 15-24 years and above 24 years)

Employment

Labour cost index

Industrial producer prices

Industrial import prices (for euro area)

Industrial production

Industrial new orders

Production in construction

Retail trade turnover

Government deficit/surplus

General government gross debt

Economic sentiment indicator monthly

Three-month interest rate

Long term government bond yields

Euro exchange rates

Sector accounts

Turnover index for other services

Service producer prices

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Job vacancy rate

Choosing the appropriate indicators

Given the fact that this paper does not deal with the examination of

the economic development of the whole country but focuses on its

different regions, it is crucial to take into account only those

indicators, which are relevant when considering the economic regional

development. Samson in his contribution about the evaluation

indicators of regions is describing the indicators of the socio-

economic level of regions, in which he includes regional GDP, the

regional rate of unemployment or the average household income in

the region. (Samson, 2008)

The Statistical Office in assessing the economic level of regions is

considering the gross fixed capital formation as a fundamental

macroeconomic indicator of the economy.

Other sources, such as the Statistical Office of the United Kingdom

reported that the main regional economic indicators include not only

regional output, respectively gross value added, which several authors

considered to be the second most important indicator of the

economic development after GDP but also the productivity, or

innovation (expenditure on science and research). (Office for National

Statistics, 2014)

Based on the above, we consider the following selected Indicators of

Economic Development of the Regions:

1. regional gross domestic product per capita,

2. average net household income in the region,

3. regional investments - spending on research and development,

4. gross value added of the region,

5. gross fixed capital formation.

All of these indicators are expressed in Euros per inhabitant of the

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region for one year. The data for the years 2004 to 2014 were collected

from the Statistical Office of the European Union, while the missing

data were either collected by the national statistical offices of

individual countries or calculated by function prediction.

Methods

Factor analysis

Factor analysis is a multivariate statistical method which aims to find

new variables (factors) through reducing the size of data while seeking

to preserve as much information as possible. This analysis is used in

case where there is a high correlation between the data or (and) in a

situation where the number of variables in the investigated

phenomenon is high and is complicated for interpretation.

Steps for factor analysis:

1. determination of the number of Factors using the method of

principal components (PCA),

2. determination of factor loading among the factors and the original

variables,

3. rotations of the matrix of factor loadings,

4. The estimation of factor scores.

To assess the appropriateness of using factor analysis the Kaiser-

Meyer-Olkin Statistics (KMO) is used.

KMO statistics aquires values from 0 to 1, while:

if aij = 0, then KMO = 1,

if aij = 1, then KMO = 0.

The following table shows the appropriateness of using factor analysis

based on the results of KMO statistics.

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Table 1: KMO statistics

KMO

statistics

Using factor analysis

0,90-1,00 very appropriate

0,80-0,89 appropriate

0,70-0,79 moderately appropriate

0,60-0,69 average

0,50-0,59 poorly appropriate

0,00-0,49 inappropriate

Source: (Stankovičová, et al., 2007)

Cluster analysis

Due to the large amount of data it is necessary to categorize these

regional data and create similar groups of individual regions with

similar values of indicators. As the most appropriate method for the

distribution of individual data we chose cluster analysis. This analysis

deals with the distribution of data to similar clusters.

Results

In this part of paper we will deal with the actual analysis of data we

have gathered from Eurostat and the statistical offices of individual

countries for individual NUTS II regions for the years 2004 to 2014.

The group of analysed regions consist of 16 Polish, 8 Czech, 7

Hungarian and 4 Slovak regions. Due to the high volume of data and

the three-dimensionality a standardization is needed before the data

analysis itself. Standardization of data is returning the normalized

values of distribution by the mean and standard deviation:

(1)

where:

i = 1, 2, 3, ..., 32 (region rank)

j = 1, 2, 3, 4, 5 (variable rank)

– value of „j“ variable for „i“ region

– mean of „j“ variable

– standard deviation of „j“ variable

93

Correlation analysis

In previous chapters, we reported that while developing clusters there

is an assumption, that no correlation between individual indicators is

present, so that the degree of dependence between them is poor,

respectively. zero. For establishing of the correlation between the

selected indicators, we used Pearson correlation test in SPSS statistical

program.

The results are shown in the Figure 1 below. One can see, that there is

a relevant correlation between indicators, thus they cannot be used in

the cluster analysis in that form.

Figure 1. Correlation results

Factor analysis

Since our data were highly correlated, it was necessary to perform

a factor analysis as he first step of analysis in order to adjust the data

for the cluster analysis. First, the outliers were eliminated from the

analysis. The outliers were the regions with extreme values – the

94

regions that significantly differ from the others. For instance, Bratislava

in Slovakia was the region, where the contrast between that region

and the rest of the country was extremely huge. The smallest

predominance is in case of the polish capital region Mazowieckie,

which can be caused by the lower development in the country as a

whole. These outliers were: CZ01 - Prague, HU10 - Central Hungary,

SK01 - Bratislava region and PL12 - Mazowieckie. Then, the factor

analysis was run for the rest 31 regions.

It was necessary to assess the suitability of data for the analysis itself

still before running the factor analysis. To do so, the KMO statistics was

used. To estimate parameters of the factor model, the principal

component analysis (PCA) was run. After selecting the appropriate

number of factors and after an initial estimation of the factor loadings

matrix, the orthogonal rotation of factors was done. Two factors

seemed to be an appropriate number of factors for each years.

The results of factor analysis has shown that the first four indicators,

namely GDP_pc, Disp_income, investment_rd and GVA_pc saturated

the Factor_1 and the last indicator (gross fixed capital formation) ,

saturated the Factor_2. KMO statistics reached a higher value than 7,

so the new two factors were suitable for use. Subsequently, the factor

scores of new factors were calculated. These two new variables were

used in the next step - the cluster analysis.

Cluster analysis

The regions were divided into similar clusters for each year through

cluster analysis in SPSS and a dendrogram helped to find out, which

regions have been the most alike and which, conversely, have differed

the most. The input data were the new two valiables - factors from the

factor analysis, 2 for each year. In analysis, the Euclidean distance was

used for calculating the degree of distance and Ward’s method of

clustering, which is the most common and used method, and the

creation of small and relatively same sized cluster is one of its main

95

advantages. The outliers are excluded from the analysis, thus the four

capital regions, since their values are significantly different from other

regions.

The following picture shows the dendrogram for 2004, based on which

the regions were divided into 5 clusters.

Figure 2: Dendrogram for 2004

Source: Author's processing

5

1

2

4

3

96

The results of clustering are in the table in Appendices: . For each

region in every year a cluster number was assigned, which the

particular region is located at. For a better overview a colour

differentiated table of clusters is presented. The table shows how

different regions were moving into another cluster over time, however

it does not tell anything about the economic development, hence it is

necessary to define those clusters based on the variables. Therefore,

the next step is the characteristics of individual clusters using the

mean and standard deviation of the variables.

Given the different characteristics of clusters from period to period, a

table ranking individual regions has been created, which was

calculated using a composite indicator. The following color

differentiated table shows the different clusters, while each region at

each year has its rank - 1 = maximum value of variables; the most

developed regions, 5 = lowest values of variables; economically

backward regions. The same shade of brown indicates that specific

regions are in one common cluster.

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Table 2: Regional cluster ranking Región 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

CZ02 1 1 1 1 1 1 1 1 1 1 1

CZ03 2 2 1 1 1 2 1 1 1 1 1

CZ04 2 2 3 4 1 2 1 4 3 3 4

CZ05 1 2 1 1 1 2 1 1 1 4 1

CZ06 1 1 1 1 1 1 1 1 1 1 1

CZ07 2 2 1 1 1 2 1 1 1 4 1

CZ08 2 2 1 1 1 2 1 1 1 4 1

HU21 2 2 3 4 4 5 5 5 5 4 4

HU22 2 2 3 4 4 5 5 4 4 4 4

HU23 4 5 5 5 5 5 5 5 5 5 5

HU31 4 5 5 5 5 5 5 5 5 5 5

HU32 4 4 4 5 5 5 5 5 5 5 5

HU33 4 4 5 5 5 5 5 5 5 5 5

PL11 4 4 4 3 3 4 4 3 2 3 3

PL21 3 3 2 3 3 4 3 3 2 3 3

PL22 3 3 2 2 2 3 2 2 2 2 2

PL31 4 5 5 5 5 5 4 5 4 5 5

PL32 4 5 5 5 5 5 4 5 4 5 5

PL33 5 5 5 5 5 5 5 5 5 5 5

PL34 5 5 5 5 5 5 5 5 5 5 5

PL41 3 3 2 3 3 4 3 3 2 3 3

PL42 4 5 5 5 4 5 5 5 4 5 5

PL43 5 5 5 5 5 5 5 5 5 5 5

PL51 3 4 2 3 3 4 3 3 2 3 3

PL52 5 5 5 5 5 5 5 5 5 5 5

PL61 4 5 5 5 4 4 4 5 4 5 5

PL62 5 5 5 5 5 5 5 5 5 5 5

PL63 4 4 4 3 3 4 3 3 4 4 4

SK02 4 4 2 4 3 2 1 4 1 3 4

SK03 4 5 5 4 4 2 5 4 3 4 4

SK04 4 5 4 5 4 5 5 4 3 4 4

Source: Author's processing

Currently, according the latest available data from 2014, the order of

the clusters is the following: the regions of cluster 1, were having the

best situation, while on the contrary, cluster 3 includes regions with

the worst values. Regions with relatively high values of the variables

were located in a cluster 5. Average regions are those in cluster 2 and

cluster 4, which were at the 3rd and 4th place among all clusters.

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Table 3: Cluster ranking according the composite indicator 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

C_1 1 1 1 1 1 1 1 1 1 1 1 C_2 2 2 3 4 4 2 5 4 3 3 4 C_3 4 5 5 5 5 5 4 5 5 4 5 C_4 3 4 4 3 3 4 3 3 4 5 3 C_5 5 3 2 2 2 3 2 2 2 2 2

Source: Author's processing

For a better overview, the results are presented in the following table

which shows the cluster structure and its rank in 2004 and 2014.

According to these results, Cluster 1 has not changed its position

comparing the first and the last year of analysis, however while in 2004

there were only 3 Czech regions, in 2014 it includes 3 more regions of

Czech republic, so the Czech regions are doing better off. The situation

is different when comparing the position of the Cluster 2, since there

has been a rapid change from the second to the fourth place. The

structure of the cluster has changed a lot as well. In 2004 the second

best regions were those in Cluster 2, while in 2014, the number of

regions in the second best cluster , which at that time was the Cluster

5, included only one Polish region. The third position was occupied

both years by the Cluster 4 which size remained the same. Cluster 3

and Cluster 2 were in the fourth place, while the number of regions

the group at the 4th place included decreased from 13 regions to 7

regions . The three Slovak regions have not changed their position – in

both years they remained in the 4th position. In 2004, there were 5

regions at the last position, however in 2014 this cluster gets bigger,

and contains 13 regions. Since the results according to last available

data from 2014 shows, that the cluster 5 contains only one region, that

could mean, that in further analysis this region would belong to the

cluster 1 or cluster 4, and therefore, in the following years, there would

be only 4 clusters instead of 5 in the beginning of 2004.

99

Table 4: Comparing the first and the last year of analysis

2004 2014

1st Cluster 1 Cluster 1

CZ02

CZ5

CZ06 CZ02

CZ03

CZ05

CZ06

CZ07

CZ08

2nd Cluster 2 Cluster 5

CZ03

CZ04

CZ07

CZ08

HU21

HU22

PL22

3rd Cluster 4 Cluster 4

PL21

PL22

PL41

PL51

PL11

PL21

PL41

PL51

4th Cluster 3 Cluster 2

HU23

HU31

HU32

HU33

PL11

PL31

PL32

PL42

PL61

PL63

SK02

SK03

SK04

CZ04

PL63

HU21

HU22

SK02

SK03

SK04

5th Cluster 5 Cluster 3

PL33

PL34

PL43

PL52

PL62

HU23

HU31

HU32

HU33

PL31

PL32

PL33

PL34

PL42

PL43

PL52

PL61

PL62

Source: Author's processing

Graphical display of the rank of individual clusters

The figure 3 in Appendices graphically shows the locations of the

various clusters and also what regions belong to common cluster. The

4 regions, which were due to their extreme values with respect to

other regions excluded from the analysis were marked with yellow.

Clusters are separated by their ranking from the darkest color to the

lightest. The darkest green indicates that in that year, the particular

100

cluster was at the first place, among all of the clusters, reaching the

highest values of the variables. Conversely, the lighter the color, the

cluster is ranked to the lower position, respectively, with lower values

of GDP, disposable income, expenditure on research and development,

gross value added and gross fixed capital formation. There are 3 years

shown in the following figure - the year of joining the European

Union- 2004, the year after the economic crisis - 2009 and last year,

2014.

The most advanced region in EU is the region CZ02. The number of

regions in the best- the first, cluster was constantly changing. While in

2004, there were only 3 regions in this above mentioned cluster, in

2014 this cluster is made up of all Czech regions except region CZ04,

which is at the 4th place. The next cluster includes in 2014 only one

polish region – PL22. Cluster at 3rd place consists 4 polish regions.

Regions such as CZ04, SK02, SK03, SK04, PL63, HU21 and HU22 are

a part of the second last cluster. All other regions shown in white, form

a cluster that is in a given year characterized by the least developed

regions. The most "white" regions are in 2009, which can be attributed

to the impact of the economic crisis.

Discussion

As it was mentioned in the first part of the paper, there have been

both similarities and disparities between the regions of the Visegrad

group. The similarities were reflected in the fact, that the regions were

divided into 5 relatively similar clusters based on their similarities.

However, the disparities were visible after the analysis and

characterizing the individual clusters. These differences could be

caused by many aspects such as cultural factors, different law system

or different spatial structures.

For the purpose of the analysis, factor and cluster analysis were used.

The factor analysis was run because of the high correlation among the

economic regional indicators, while the cluster analysis was used in

order to get relatively homogenous groups of regions out of all of

101

them. However, it was necessary to exclude 4 regions from the

analysis, which were characterized by highly extreme values

comparing to the other regions. These regions were the regions where

the capital city is located.

As an example of a similar empirical study the paper of Anna

Golejewska could be mentioned, called Competitiveness, innovation

and regional development. The case of the Visegrad Group countries

(Golejewska, 2012) where the author focused on the regional

development in terms of competitiveness and innovation and tried to

find out, whether these two indicators depend on each other.

Moreover, the author focused on testing the impact of nationality on

clustering. The analysis comprises two groups of indicators. First of all,

it is the competitiveness indicators, which consist of GDP pre capita

(PPS), employment and unemployment rate. The second group

includes indicators of innovativeness such as patent applications, R&D

expenditure as percentage of GDP, R&D personnel as percentage of

total employment and core Human Resources in Science and

Technology as percentage of active population. Even though different

indicators were used in these two papers, the final results are similar.

Five groups were created in the cluster analysis, while the capital

regions were excluded and formed another, sixth group. The group of

Czech regions was doing better off in both cases. On the other hand,

mainly Polish regions were those, which formed the group (cluster)

with the least developed regions based on specific indicators. On the

contrary, in terms of innovations and competitiveness, Hungary has

more developed regions than in terms of indicators selected by us.

By means of cluster analysis, which has divided the regions into 5

clusters, and defining the ranking of the clusters through creating a

composite indicator, we have estimated, which regions were doing the

best, and which, in contrary, the worst. However, the structure of the

cluster itself says nothing about the economic development of its

regions, until it is not characterized. The mean and the standard

deviation of each indicator of each year was used in order to

characterize the clusters. Obviously, the compound of the clusters has

102

changed over years, however even their position was changing over

the time of 11 years. For instance, while during entering the EU the

cluster 5 was typical for least developed regions, since 2006 this

cluster is characterized by developed regions and is ranked in the 2nd

place. The most developed cluster during the whole period seems to

be the Cluster 1, containing only Czech regions, which was on the 1st

place during the whole analysed period and the number of regions in

this cluster even doubled during this time. On the contrary, the least

developed cluster seems to be the Cluster 3, containing Polish regions,

which was fluctuating between the 4th

and the last place for the whole

period. Moreover, the number of the regions from the cluster at the

last place increased, but so did the number of regions in the first

place. That means that the most developed clusters got bigger and so

did the least developed clusters however, the clusters in between got

smaller or remained the same size. Because of this, a cluster with only

1 region in it was created. Despite the fact, that even though the

values of every region are higher, there are more regions in the least

developed cluster, these regions are closer to each other.

Conclusion

Regions and their development are nowadays one of the main areas of

focusing of the European Union. Countries need competitive and

dynamic regions, in order to achieve their economic, social or

environmental goals. The process of regional development is

conducted through the implementation of regional operation

programs in the area of regional development of the EU.

The first part of the paper consist of the theoretical background and

the motivation for this research in terms of the European Cohesion

Policy. The authors in the second part focused on selecting the right

indicators of regional economic development based on the Principal

European Economic Indicators. Furthermore, the methodology is

described in the following part, thus Factor and Cluster analysis. The

results of all the analysis are presented in the next part of the paper.

Last but not least, a the results are discussed in the last part of the

103

paper, Discussion.

The main contribution of this paper was finding a set of 5 Indicators of

Economic Development of the Regions based on several empirical

studies and the analysis of the regions of the Visegrad group with

regard to these economic indicators, which were the regional GDP per

capita, the regional average net household income, the regional

investments in research, regional gross value added and finally the

regional gross fixed capital formation.

Another contribution was the analysis of 31 regions and their

economic development values in terms of correlation, factor and

finally cluster analysis, which grouped the regions into 5 clusters

based on their similarities. All of these clusters were further analysed

and characterized by the mean and the standard deviation of its

variables. Finally, the results were compared and presented in the last

part of the paper. While analysing the results, we should not forget,

that they are based on 5 selected indicators and that adding or

excluding one of the variables could lead to slightly different results.

References

1. Buček, M., Rehák, Š. and Tvrdoň , J. 2010. Regionálna ekonómia a

politika. Bratislava : IURA Edition, 2010. ISBN 978-80-8078-362-4.

2. European Commission. 2009. Principal European economic

indicators. A statistical guide. [Online] 2009. [Cited: 02 02 2015.]

http://ec.europa.eu/eurostat/documents/3217494/5713943/KS-81-

08-398-EN.PDF/b7c1a8d5-2ea1-4e1c-b585-

4582e92f5e2d?version=1.0. ISBN 978-92-79-09695-2.

3. European Commission. 2002. Regional policy of European Union.

2002. ISBN 80-89102-01-8.

4. Golejewska, Anna. 2012. Competitiveness, innovation and regional

development. The case of the Visegrad Group countries. s.l. : KEIE

UG, 2012. ISSN 2080-09-40.

5. Gorzelak, Grzegorz, Bachtler, John and Smetkowski, Maciej. 2015.

Regional Development in Central and Eastern Europe Development

104

processes and policy challenges. s.l. : Routledge, 2015. ISBN 978-1-

13-881693-0.

6. Office for National Statistics. 2014. Regional economic indicators.

[Online] 2014. [Cited: 15 03 2016.]

http://www.ons.gov.uk/ons/dcp171776_369754.pdf.

7. Samson, Š. 2008. Ukazovatele hodnotiace úroveň regiónov. Košice :

TUKE. Ekonomická fakulta, 2008.

8. Stankovičová, I. and Vojtková, M. 2007. Viacrozmerné štatistické

metódy. s.l. : Iura Edition, 2007. ISBN 978-80-8078-152-1.

9. Svitana, R. 2006. Vybrané pojmy európskej integrácie. CPEP.

[Online] 2006. [Cited: 10 12 2015.]

http://www.cpep.sk/fileadmin/Dokumenty/publikacie/Vybrane-

pojmy-europskej_integracie__2_.pdf. 80-7165-575-9.

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Appendices:

Table 5: Clustering results

Source: Authors processing

106

Figure 3. Graphical design of clustering in 2004,2009 and 2014

107

REGIONAL DEVELOPMENT IN SLOVENIA20, 21

INSIST OR CHANGE?

Dr. Franci Žohar22

Ministry of Public Administration, Service for Local Government,

Tržaška cesta 21, 1000 Ljubljana, Slovenia

franci.zohar@siol.net

Introduction

Over a longer period, Slovenia present development policy the less

developed areas, initially focusing on demographic issues that have

also been regional component, and later on the policy of encouraging

the development of regional development. The system of promoting

balanced regional development by the end of 80 years of the last

century by gave some positive results, but less than expected. In

certain less developed areas has improved features with the economic

and social infrastructure, structure of the economy has not changed

much and was based on large enterprises, which are at the beginning

of this century largely collapsed. As he maintained a fairly stable

structure of the economy and that investments were mainly labor

intensive, a large part of the educated youth did not get suitable

employment in the local and wider environments, the continued

exodus of mostly younger age population in urban environments. In

20 All statements and views in this article is the opinion of the author and do not necessarily reflect the views of the organization in which he is employed or organizations with which it cooperates. 21 Some of the content is taken from the author's doctoral dissertation entitled The autonomy of municipalities and intermunicipal integration with a view to promoting regional development. 22 Franc Žohar, PhD. works at the Government Office for Local Self-Government and Regional Policy, Division of Local Government, which belongs to the Ministry of Public Administration. additionally he is lecturer at different Slovenian Colleges and is expert at the National Agency for Quality in Higher Education. In his career he published over 240 publications in various scientific and professional journals in the field of local self-government, public finance, law and logistics in Slovenian, Croatian and English languages.

108

some less developed geographical, mountainous and border areas,

but continued depopulation.

In 90 years we have witnessed a reduction in funds for regional policy,

focusing only on demographic indicators and participation of sectoral

policies. Country Slovenia in this period, activities to be included in

the EU cohesion policy approach to change in regional policy and

establish renewed systemic conditions for its implementation. In the

period until 2004 is competent ministry with direct regional incentives

mainly financed broader regional projects, however, they are already in

the 2000-2004 period have had an important role infrastructure

projects of local communities. High economic growth, the increase in

resources devoted to the promotion of balanced regional

development, in particular EU funds and optimistic forecasts have

prompted significant investments, particularly in local projects, which

raised the level of infrastructure facilities. Favourable economic trends

and expectations have resulted in the reduction of unemployment and

a fairly successful business is not restructured economy.

With the onset of the financial and then economic crisis has

highlighted weaknesses in Slovenian model of economic development

both at national and regional level. Due to the large decrease in orders

to companies with up to 50% of the credit crunch, bad investments,

halting investments in infrastructure and reduced private consumption

decreased GDP in the second half of 2009, a significant increase in the

number of unemployed and, consequently, registered unemployment

rate (SVLR, 2010 3).

The largest decrease in the number of employees was in

manufacturing, agriculture, mining, while there was a reduction in the

number of employees in the service and in the public sector is much

smaller. The economic crisis has revealed particularly in regions that

have historically lagged behind in development and which have failed

some important companies and the latter encountered difficulties, for

example in the Pomurje and Koroška.

109

Figure 1: Regional effects of the crisis. The registered unemployment

rate in September 2008 and its absolute change in percentage points

in the period to the end of 2009

SpremNezap - change in unemployment in percentage points

Nezapo0908 - absolute change in percentage points in the period to the end of 2009

Source: SURS, display and conversion SVLR.

Especially great was the impact on the Pomurje region, where the

registered unemployment rate increased sharply. Approval of the

emergency law on development support to the Pomurje region in the

period 2010-2015 to improve this part. Situation in the area of

regional development calls for serious reflection on the existing model

of promoting regional development, as the region has failed to

provide a sufficient number of "competing" jobs with added value per

employee over 30,000 euros, which would enable the EU comparable

wage, adequate social protection and business development and

consequently the country, regions and local communities. The current

modes of individual sectoral development policies in the regions that

were poorly interlinked, were not effective enough and especially not

110

successful. Regional policy, which has in recent years almost all

regions leaves the development initiative, it is also proven weaknesses.

Regional institutions, particularly regional development agencies have

not been able to connect the different regional interests and drastic

state centralism, at which were strengthened regional centralism and

respond to them even localities. The financial and economic crisis has

helped to clearly show what was previously hidden and what is not

given its true meaning. Based on the above it is obvious that it is

necessary to approach the transformation model of regional

development and operation of Regional Development Agencies as

providers in this field, taking into account other actors who have in the

meantime developed at regional or inter-municipal area.

Situation In Regional Development At The Level Of Statistical

Regions

In Slovenia, regional differences are still fairly large. In doing so, it

draws attention to the many developmental diversity of Slovenian

municipalities and regions, which for several decades indicates the

concentration of certain regions in which there is a larger part of the

population, jobs and economic operators, on the other hand, regions

which show the lower level of development, rarely settlement and bad

development potential. Thus, despite the efforts of the presented

detectable increase in regional differences. On this we are stating the

relationship between the most and least developed regions on the

basis of gross domestic product - GDP (2.14: 1 in 2010 to 2.1: 1 in

2003 and 1.98: 1 in 2000) and the situation on the in other indicators

of regional growth, as capital educated workforce, research and

development. It notes the creation of some major development

centers, including within the Central Slovenian region, water Ljubljana.

The following two figures show a clear decrease in GDP in the

Pomurska, Koroška, Zasavska, Gorenjska, Central, Inner-Kras and

Gorica statistical region. Reduction of GDP, except in the case of

Gorenjska, Central and Inner-Karst region, followed by reduction of

the population (SVLR, 2010). Although the GDP in recent years

increased in all regions, the highest growth rate reached more

111

developed regions, what the situation in the field of regional

development are exacerbated, as shown in the following bullet points

(based on publicly collected data and (SVLR, 2010) edited by author ):

Gross domestic product shows a wide variation between regions

depending on the size of GDP, as, for example, has only Central

region of the year accounted for more than a third (36.1% in 2007

and 36.58% in 2011) of total Slovenian GDP, it is slightly less than

the 9 regions (39.1% in 2007 and 38.67% in 2011) and significantly

more than the 8 regions (30.7% in 2007 and 30.42% in 2011) with

a minimum GDP together - together with the Drava region and

half of Slovenian GDP (49.6% in 2007 and 49.72% in 2011). It

follows that the differences increase.

Jobs are mainly concentrated in the Central region. The lack of

jobs in each region resulting in greater and constant commuting

employees and higher unemployment. The largest shortage of

jobs in relation to employment in Zasavska region.

In the area of unemployment are large regional differences, which

are the most exposed to the region, which has long-term excess

of the national average (Pomurska, Podravska, Koroška and

Zasavska region).

In recent years we have witnessed the growth of population,

concentration continues in the Central region, where he has lived

for more than a quarter of the total population of Slovenia.

Demographic projections predict a decline in the number of

inhabitants in the Slovenian regions and their aging, which

represents the state, regions and municipalities additional

challenges, both in terms of social-health point of view, as well as

possible the potential for economic development.

112

Figure 2: Number of population and gross domestic product by

statistical regions in 2003

Source: Statistical Office of the Republic of Slovenia and the Surveying and Mapping

Authority of the Republic of Slovenia. (2003)

Development of the region with strong economic potential are

those where the population is above average educated, and where

the employees above-average percentage of employees with a

high level of education. These regions have the greatest number

of students per capita population is more healthy.

Among regions there is a difference in the presence of higher

education institutions, which are concentrated in the Central,

Podravska-Karst region and Gorizia region, although individual

faculties and higher education institutions located in other

regions. With improved transport accessibility and the

development of ICT available to study greatly improved.

113

Figure 3: The number of inhabitants in 2012 and gross domestic

product by statistical regions in 2011

Source: Statistical Office of the Republic of Slovenia (2014).

There are also differences in the presence of scientific research

institutions, which are mostly found in the Central region and in

Ljubljana.

There are differences in the equipment of the physical

infrastructure, especially the poor regional traffic connection,

where a less extensive road network. Traffic information municipal

centers within regions is better.

114

Figure 4: Education of the population aged 25-64, statistical regions,

Slovenia, 1 January 2013

Source: Statistical Office of the Republic of Slovenia (2014).

Border Regions

Slovenia has almost 1,400 km of state border. In Slovenia, as the

border is defined as 50% of the municipalities where the frontier zone

limited to 10 km. Corresponding to this is also our cross-border traffic.

Slovenian citizens out annually about 50 million crossings. Across the

border go on average once every 14 days. Differences in levels of

development of countries and regions NUTS-2 levels in a radius of

500 km around the geometric center of Slovenia, measured in GDP

per capita are very obvious. North and west of Slovenian regions

which are among the most advanced in the EU, such as certain

northern regions, the Bavarian region as well as Salzburg and Vienna

region. Somewhat less but still above-average development of the EU-

25 achieved a neigh boring Friuli - Venezia Giulia, Carinthia and Styria.

On the other hand, Slovenia to the east and south of the border to the

considerably less developed Hungarian and Croatian regions and

countries of the Western Balkans. Similarly, the situation regarding the

115

employment of the population and the competitiveness of regions

within said space, wherein the position of the Slovenian mentioned

indicators slightly more favorable.

Slovenian border region in the last few years improved its absolute

position relative to the border regions in Austria and Italy, however,

the level of development of most neigh boring regions in Italy and

Austria still much higher than the development of Slovenian regions

(Figure 5)."Step by them, fished Central Region, other regions have, as

the Austrian Burgenland and all Hungarian and Croatian regions,

index levels compared with the average of the EU-27 under 80 issue of

further catching up of Slovenian border areas of Austria and Italy,

therefore, continue to be relevant and requires further strengthening

regional innovation systems and their cross-border integration and

euro regional cooperation "(GOSP 2010, 10-11).

Promoting Balanced Regional Development

Country Slovenia is the transformation of regional policy in the second

half of the 90s set of system conditions for the further implementation

of regional policy. The National Assembly in 1999 adopted a law on

balanced regional development in 2000 have been adopted by laws

that define the objectives, principles, organization, promoting

balanced regional development, the allocation of development

incentives and criteria for the identification of areas with specific

development problems. In 2001, the Government adopted the

Strategy of Regional Development of Slovenia (hereinafter: SRRS),

which is a fundamental strategic document of Slovenian regional

policy. SRRS provides detailed guidance for the further

implementation of regional policy and its adjustment to changing

circumstances.

116

Figure 5: Regional GDP per capita at current prices for 2006 (EU-27 =

100) compared to neigh boring regions at NUTS 3 level.

Source: 2009 Annual Report on the implementation of the National Development

Program of the Republic of Slovenia in the period 2007-2013, Government Office,

Ljubljana.

It also established an appropriate institutional framework, the ministry

responsible for the Regional Development Agency for Regional

Development, Regional Development Agencies, etc. An important role

should entail programming committees, and later regional

development councils.

Since 2001, the Republic of Slovenia started to promote regional

development by directing budget funds to priority areas of Slovenian

regional policy. These were mostly areas with special development

problems, set at the level of municipalities and regions A and B23

. On

the other hand, the regional policy is too weak (financially,

institutionally) to significantly shifted unfavorable development

guidelines and ensure harmonious development of the entire national

23 Navodilo o prednostnih območjih dodeljevanja spodbud, pomembnih za skladni regionalni razvoj (Ur. l. RS, št. 44/01).

117

territory. The main problems of regional policy accession to the EU

were as follows:

the shortage of good projects,

lack of focus (too similar to projects on a small territory)

funding was not an orderly system, despite the progress made,

major difficulties in cross-sectoral coordination,

lacked the knowledge and experience,

monitoring of projects and programs have been underdeveloped,

evaluation of projects, programs and policies were not adequate

(deficiency of knowledge, methodologies and experience).

Thanks to EU funds, the year 2007 the amount of funds dedicated to

regional development, increased sharply. By setting a quota of funds

by region, taking into account the development risk index has been

achieved the desired asset allocation in favor of the less developed

regions and regional policy is an opportunity to make the

complementary regional projects to support the development efforts

of sectoral policies.

Evaluation of these calls was identified some risk factors, the success

of the program in achieving the objectives of the program:

1. The Regional Council is actually a political body composed of

mayors, they were in decision-making at the forefront of political and

local interests, rather than the priorities of the comprehensive

development of each region.

2. The regions have established a clear definition of the regional

project. Connecting a large number of municipalities in the execution

of operations is not a common practice since the regional distribution

of the available quotas to individual municipalities, requires the

realization of priority projects in each local community.

3. Regional development agencies are not sufficiently involved in the

preparation of projects of regional importance, as well as

municipalities generally do not have sufficient financial and human

capacity to prepare projects on the stock, which could be adequately

118

reacted to tender, for which the deadline for submission of

applications relatively short.

4. In border and cross-border area's regional policy met with a

completely new facts. Opened up new opportunities and expected

that the intensity of cross-border relations greatly increased.

Analysis show24

that this depends not only on the general

international conditions, but also from a number of local factors:

vision and strategy and state of development programs in border

areas,

adequate territorial organization and decentralization of public

functions, which promotes cross-border cooperation. The

question regarding the establishment of provinces, is an extremely

important,

functional organization of the border area for work and life of the

population (question Euroregion?)

degree of social and cultural integration of the border population.

Positive And Negative Experiences With Regional Policy

Among the positive experience of previous regional policy is a shift in

the status and organization of certain institutions, regional

development agencies, regional development councils and regional

councils in all development regions, the principles of operation and

the design and scale of investment in the development of regions,

especially the integration of EU cohesion policy funds).

Experience and results also show that the changes made were not

optimal in all respects; it is also less effective implementation. The

current regional policy is not sufficiently transparent institutional

organization at all levels does not guarantee implementation of the

principles of partnership and effective implementation of the

24 Bufon, Milan. (2008) Slovenska obmejna območja po vstopu Slovenije v schengenski prostor; v monografiji: Na obrobju ali v osredju?, Milan Bufon s soavtorji, Založba Annales, Koper.

119

legislation. An inter-ministerial co-ordination is insufficient, the

operation of individual departmental policies in the regions,

incoherent and many times without any possible synergies. The

institutions at the national and regional levels are unstable, the

composition of regional councils (mayors) allows the predominance of

local interests. Thus, it is necessary to focus on key regional problems

and few real regional projects. Due to the large number of fragmented

projects experiencing difficulties in absorbing EU cohesion funding,

inadequate but also monitoring and evaluation of programs. The poor

socio-economic status and limited financial incentives in times of

financial and economic crises call for a focus on key development

projects in the region, and fully exploiting the internal potential of

regions. Strengthen the necessary actions to ensure greater

coordination and partnership in the planning and implementation of

regional development programs. It is necessary to more effective

coordination of national sectoral development policies and improve

the efficiency of regional policy. The necessary changes in policies,

status and the institutional organization of regional policy. Among the

positive experience of previous regional policy is a shift in the status

and organization of certain institutions, regional development

agencies, regional development councils and regional councils in all

development regions, the principles of operation and the design and

scale of investment in the development of regions, especially the

integration of EU cohesion policy funds).

Experience and results also show that the changes made were not

optimal in all respects, it is also less effective implementation. The

current regional policy is not sufficiently transparent institutional

organization at all levels does not guarantee implementation of the

principles of partnership and effective implementation of the

legislation. An inter-ministerial co-ordination is insufficient, the

operation of individual departmental policies in the regions,

incoherent and many times without any possible synergies. The

institutions at the national and regional levels are unstable, the

composition of regional councils (mayors) allows the predominance of

local interests. Thus, it is necessary to focus on key regional problems

120

and few real regional projects. Due to the large number of fragmented

projects experiencing difficulties in absorbing EU cohesion funding,

inadequate but also monitoring and evaluation of programs. The poor

socio-economic status and limited financial incentives in times of

financial and economic crises call for a focus on key development

projects in the region, and fully exploiting the internal potential of

regions. Strengthen the necessary actions to ensure greater

coordination and partnership in the planning and implementation of

regional development programs. It is necessary to more effective

coordination of national sectoral development policies and improve

the efficiency of regional policy. The necessary changes in policies,

status and the institutional organization of regional policy.

Regional Development Agency (hereinafter: RDA) is the basic form of

organization for the operational implementation of regional policy at the level

of development of the region. Each development region has only one RDA,

development tasks can be adopted by the Council in the region to engage in

regional development agencies (hereinafter referred to as the ORA). Among

these development institutions are significant differences in staffing levels in

the services and the legal form. In addition to these 137 full-time employees

in the development of these institutions perform public works and works for a

certain time and work on a contractual basis (SVLR 2010, 28).

With those institutions SVLR25

conclusion of the contract on co-

financing of development tasks at the regional level, in the public

interest. The total amount of co-financing on an annual basis amounts

to 1 million euros. Among the regions, these resources are divided

according to a key which takes into account the 60 percent weighting

fixed part, which is the same for all development regions, and 40 per

cent weighting variable part. The variable part depends on the

number of municipalities in the area of development of the region

and the development risk index in the region. SVLR (MGRT) funded

development activities at the regional level, provided that the

municipalities provide their share of funding at least 40%.

25 Now the Ministry of Economic Development and Technology (MGRT).

121

Table 1: Positive and negative experiences with regional policy

POSITIVE EXPERIENCE

NEGATIVE EXPERIENCES

• Establishment of institutional

framework: the responsible ministry

• Adopted legislation.

• Increased funding.

• Strategic basis: at the national level

and across departments.

• Successful planning phase of

cohesion policy.

• Experience with the preparation of

regional development programs.

• Managing Authorities for cohesion

policy.

• Development sweep in the regions.

• Increased public attention to

regional problems

• Regional policy is not further defined

and positioned.

• Insufficient inter-ministerial

coordination - a low level of

interconnection between instruments

seemingly parallel aspects of planning.

• The changing role of institutions for

the implementation of regional policy.

• Absence of other levels of local

government.

• There is a lack of comprehensive

ready-regional projects (lacking

financial support, personnel deficit,

lacking professional support to

countries).

• The dominance of local interests

(partial interests prevail, the dominant

role of municipalities in decision-

making in the exploitation of regional

initiatives, the fragmentation of

regional quotas funds to the municipal

quotas).

• Insufficient focus on key issues (too

many similar projects (too) small

territory).

• Defective sense of responsibility for

strategic decisions.

• Difficulties in absorbing EU funds

(complicated procedures, personnel,

own participation, liquidity, ...).

• Inadequate monitoring and

evaluation of projects, programs and

institutions at the regional level.

Source: Expert basis for a new law on the promotion of balanced regional development.

Government Office: (2010, p. 28).

From the foregoing, it can be estimated that the state and

municipalities, on average, jointly financed by more than 5 employees

in the development region. This represents less than 50% of the labor

costs incurred in development institutions. taking into account other

122

costs, the possible conclusion that the regional development

institutions vast majority of funds for their operations to obtain on the

market.

Table 2: Advantages and disadvantages of RDA

ADVANTAGES

DISADVANTAGES

1. The multifunctionality and

flexibility

2. The available infrastructure

3. The network of contacts and

visibility in the region

4. Access to a wide range of

information the state, municipalities,

etc.

5. A broad network of contacts in the

EU and SE Europe

6. Knowledge development,

application and management, project

management soft

7. Knowledge of financial

management schemes and programs

8. Some of the regional development

agencies is working well

1. Obsolete skills and self-sufficiency of

personnel.

2. Non-uniform statuses (sometimes

dominant private capital, sometimes

dominant role of municipalities) structure ..

3. Lack of initiative RDA those who depend

on the municipalities.

4. The majority does not have a long-term

strategic plan and vision.

5. They do not have their own resources to

invest in studies, project development, etc.

6. Too weak control over the operations of

RDA - no measurement results and the

quality of service, not standards.

7. There is no coordination at the state

entering or co-finance the various activities

of RDA (GOSP - MEDT, JAPTI - I know,

Human Resources Development Fund -

scholarships, etc.).

8. Ignorance of spatial planning.

9. The transfer of knowledge within the

region and between regions (no meetings,

conferences, etc.).

10. In some regions focus on regional

centers and economic dimensions of

development.

Source: Expert basis for a new law on the promotion of balanced regional development.

SVLR. (2010, 30)

In carrying out development tasks in the regions contractors involved,

in addition to those which are registered with the GOSP-MEDT, and

their activity SVLR also co-finances some other development

institutions (SVLR, 2010). These institutions have a total of 62

additional full-time employees to full-time. In total, therefore, the

development institutions in the region around 200 full-time

123

employees.

The Vision Of Regional Development And Transformation Of The

Functioning Of The Regional Development Agency

In regional policy should not only going to invest in physical capital

regions and activities only in economic terms but also to invest in

social capital in the region, which includes human capital, social

capital, cultural capital and the environment. Also, the competitiveness

of the regions can not be based only on economic competitiveness in

the global market, but also on the efficiency and performance in terms

of overall quality of life, environmental protection and sustainable use

of natural resources.

Role models RDA's (shown in Figure 6):

Model A is very rare. The case was Shanon Development in

Ireland.

Model B is a top-down approach. The existence of national

regional agency, which has its offices in the regions. An example is

Sweden (NUTEK).

Model C is an example of the Netherlands, where the RDA is

largely bound to a local government (province).

Model D: RDA's are the result of initiatives of local government.

They have different shapes and are formed from a variety of

causes. They are not the result of a systematic approach, therefore,

is not present on the entire territory of the country. Such cases

have throughout the EU and in the candidate countries (such as

Poland in the 90s).

Today is considered to be mainly in the Anglo-Saxon countries

important link between the State (Ministries) and RDA's, while

other members considered that the RDA her increasingly at the

service of regions and less in the service of the central

government. While they were in the past, development agencies

established in the problem areas are today present in the entire

country (SVLR 2010, 72-73).

124

The vision of regional development in Slovenia provides dynamic and

creative regions have expressed their own identity and effective

management, which are able to detect and engage in global

development opportunities. They do not mean only branch of law and

the interests of local communities, but rather an autonomous entity

and facilitator in the wider regional or inter-municipal area and field

operations, as well as the creator equivalent and synergistic

partnerships with other actors in regional and inter-municipal

networking. Their development should be based on economic

performance and efficiency, social justice and environmental

responsibility.

The overall development objectives of regional policy are:

Enhance economic, environmental and social capital in the region

and increase its effectiveness in terms of economic

competitiveness, quality of life and sustainable use of natural

resources.

Tackling structural problems of target problem areas and reduce

their development gap.

Implementation and strengthening the development potential of

Slovenian regions through cooperation with other actors in

regional and inter-municipal networking.

Further substantive, targeted and strategic alliances through joint

municipal authorities, in particular where there quantitative and

qualitative functioning of the joint municipal administrations that

already allows SOU (joint municipal administration) Lower Drava,

Maribor SOU, SOU Sasha, Carinthia SOU, SOU Posavje, Zasavje

SOU.

Implementation and strengthening the development potential of

Slovenian regions through cooperation with similar institutions in

the regions and internationally.

Depending on the current operating model of regional development,

which was not very successful, since it had the relevant ministry for

regional development over the responsibilities and roles, even

125

patronage oversight of individual development agencies. Among

other things, it is tolerated and allows mixing of private interests with

public funds. It is unacceptable that extends the disordered state

ownership.26

Slovenia should follow the model C and D in the further development

and the role of regional agencies. With that in Slovenia at the moment

we do not have the regions, it would be closer to a model of D.

However, given the fact that the regional or inter-municipal level in

operation already in operation for some operators, it is necessary to

include forms of intervention model C and strategically developed in

CD combination model.

26 What has happened again with the Law on balanced regional development ZSRR-2

(Official Gazette of RS, Nos. 20/11 and 57/12), which was amended in 2012 and the

obligation of changing the status of the RDA in a public institution deleted from the

20th Article. Transitional provision (article 34, which says (2) of the RDA, providing

general development activities in the region under this Act, it shall be in accordance

with Article 20 of this Act, be established as a public institution until 31 December

2013), adopted in 2011 has thus become irrelevant. Current situation with regard to the

required legal status RDA is as follows:

20. Article ZSRR-2 (after the change ZSRR-2A)

(3) "RDA must meet the following conditions:

- is majority publicly owned and with a majority of municipalities within the public

share, while none of the municipalities may not have more than a one third share of the

sponsoring,

- the professionally qualified personnel to perform the tasks of general development in

the region,

- turns out to be part of a regional development network and covers the entire region,

- submit an implementation strategy for the general development tasks in the region,

- turns out to have a contractual relationship with the regional development partnership

on the distribution of general development tasks in the region if the region formed local

development partnership, turns out to have a relationship with other legal entities in

majority public ownership of the distribution of general development tasks in the

region, if based on the decision of the world total performed overall development

activities in the region. "Article 15 ZSRR-2A

(3) RDA, which is the date of enactment of this Act registered as regional development

agencies of the Ministry of Economic Development and Technology, proceed with the

general development tasks in the region until the end of the program period.

Conditions of the first indent of the third paragraph of Article 20 of the Act must be

completed no later than four years after the entry into force of this Act. So in 2016, until

then, depending on the dynamics of current changes can we expect a series of

innovative solutions.

126

Conclusion

Over a longer period, Slovenia present development policy the less

developed areas, initially focusing on demographic issues which had

also been the regional component, but later on policy to encourage

the development of regional development.

With the onset of the financial and then economic crisis has exposed

weaknesses Slovenian model of economic development at both

national and regional levels.

127

Figure 6: The role of the RDA's in EU Member States

Source: Adapted from Absorption capacity for Structural Funds and the regions of

Slovenia. (2001, p. 21).

128

In Slovenia, regional differences are still fairly large. In doing so, it

draws attention to the many developmental diversity of Slovenian

municipalities and regions, which for several decades indicates the

concentration of certain regions in which there is a larger part of the

population, jobs and economic operators, on the other hand, regions

which show the lower level of development, rarely settlement and bad

development potential. Thus, despite the efforts it presented

detectable increase in regional disparities. The current regional policy

is not sufficiently transparent institutional organization at all levels

does not guarantee implementation of the principles of partnership

and effective implementation of the legislation. Strengthen the

necessary actions to ensure greater coordination and partnership in

the planning and implementation of regional development programs.

It is necessary to more effective coordination of national sectoral

development policies and improve the efficiency of regional policy.

The necessary changes in policies, status and the institutional

organization of regional policy.

In addition, we offset the creation of regions and other levels of

organization of local government in Slovenia, which is a constitutional

category in vague and politically uncertain time. Based on the

foregoing, we believe that it does not appear to insist on regional

development model, which does not give the expected results and

strengthens the internal tensions and wait for regionalization in

Slovenia, as the answer to all problems.

We suggest that Slovenia could follow the model C or D in the further

development and the role of regional agencies. The fact that Slovenia

currently has no provinces, it would be closer to a model of D.

However, given the fact that the regional or inter-municipal level in

operation already in operation for some operators, it is necessary to

include forms of intervention model C and strategically developed in

CD combination model.

129

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osredju?, Milan Bufon s soavtorji, Založba Annales, Koper.

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Marjan Sedmak. Ljubljana: Založba Sophia.

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gibanja za teritorialno utemeljen in skladen regionalni razvoj.

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Ljubljana.

5. OECD Territorial Reviews Slovenia. (2011). OECD Publishing.

6. Navodilo o prednostnih območjih dodeljevanja spodbud,

pomembnih za skladni regionalni razvoj (Ur. l. RS, št. 44/01).

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Ljubljana.

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Ljubljana.

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12. Strokovne podlage za pripravo novega zakona o spodbujanju

skladnega regionalnega razvoja. SVLR.2010.

13. Uredba o standardni klasifikaciji teritorialnih enot (Uradni list RS, št.

28/00).

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RS, št. 20/11 in 57/12)

130

REFUGEES IN EUROPE: FROM MEDIA ACCOUNTS TO

PSYCHIATRIC TRAUMA

Anca-Olga Andronic, Răzvan-Lucian Andronic

Faculty of Psychology and Educational Sciences, Spiru Haret Unversity,

500152, Turnului 7, Brașov, România,

pp.bv.anca.andronic@spiruharet.ro;

pp.bv.razvan.andronic@spiruharet.ro

The media and the issue of refugees

The “refugee crisis” facing the European Union is widely reported by

the European media in ways that sometimes contributes directly to

the assertion of the anti-immigration politicians (Boomgaarden, H. G.,

and Vliegenthart, 2007) and that is also because the European media

(especially the written one) is commonly associated with some

political positions (Bleich, Bleich, Bloemraad and De Graauw, 2015, p.

862).

Regarding the Romanian media, it presents (mainly in the news) many

accounts related to the difficulties of managing a large number of

people who are in transit or who want to reside in the European

countries. Less present are the accounts about individual cases, about

the refugees’ fates and traumas. However, this subject was tackled by

cinematography (Ponzanesi, 2011). In other words, it rather reflects

what “we” (the Europeans) do in relation to an impersonal “they”.

Besides the well-known psycho-sociological explanation, “the out-

group homogeneity effect” (the tendency to consider the members of

the other group, the out-group members, more similar to one another

in comparison with the members of their own group who are seen as

different, being perceived as an individual), we may invoke another

131

one that keeps track of the fact that so far the “Balkan route” followed

by the refugees from the Middle East has avoided Romania.

The main topic discussed in the Romanian media regarding the

refugees is the controversy over the mandatory quota of refugees who

will be resettled in all the EU countries, so that all its members to

contribute jointly in order to improve their situation. In this case, also,

the media discourse is impersonal, taking into consideration only the

logistical and financial aspects, not the people who went into exile

(who are perceived predominantly in a stereotypical manner –

Andronic, 2016).

It is foreseeable that the refugees’ situation will not be in the near

future only a topic for the media in Romania, but it will require

intensely the public services, especially and primarily the mental

health ones. Based on the results of some reference research (Steel,

Chey, Silove et. al., 2009), based on the meta-analysis of the literature

on the traumas suffered by refugees, which shows that about 30% of

them suffer from mental health disorders (Steel, 2009) one can make a

rough estimation: in the coming years it is possible to be necessary to

provide specialized services to a significant number of people,

possible 600 (30% of the 2,000 refugees allotted to Romania).

The refugees’ traumas and their diagnostic

The research on the psychological traumas suffered by the civilians

who took refuge from the armed conflicts was initially carried out in

the Southeast Asia, stating that they were suffering from

posttraumatic stress disorder mainly, abbreviated PTSD, in proportions

that varied between 10% and 86% (Thulesius and Hakanson, 1999, p.

167).

An important number of studies have focused on the trauma of the

refugees from Bosnia-Herzegovina who arrived in other European

countries, these revealing an incidence of PTSD which varied between

45% and 82% for a batch investigated in Norway and between 18%

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and 33% in the research carried out in Sweden (Thulesius and

Hakanson, 1999). Comparable results were obtained after studying the

incidence of PTSD in Bosnian adolescents who fled to other parts of

their own country (Hasanovic, 2012). Similar studies have been

conducted on other continents; for example in the USA, a batch of

Bosnian refugees was examined three and a half years after their

settlement in the United States, and the results show that “44% of

women and 8% of men meet the criteria for diagnosis with PTSD”

(Vojvoda, Weine, McGlashan, Becker, and Southwick, 2008, p.421).

At present, the situation of the refugees concerns us primarily due to

the scale of the phenomenon. The Office of the United Nations High

Commissioner for Refugees estimated that in 2012 there were over 45

million refugees in another country, but also within the same country

(Schnyder, Muller, Morina et.al., 2015, p. 267) while in Europe about 1

million refugees arrived only in 2015 (Musaro, 2016, p.13).

In addition, it is also worrying the very high proportion of migrants /

refugees suffering from psychological traumas (terms that are used

interchangeably in the media – Musaro, 2016): However, for the

refugees affected by trauma, usually there isn’t a unique event that

leads to emotional distress, but rather prolonged and repeated

trauma in their home countries, often exacerbated by more stressful

events during and after their departure” (Sonne, Carlsson, Bech,

Vindbjerg et.al., 2016, p.2).

Regarding the psychiatric diagnoses used to describe the medical

condition of the approximately 30% of the refugees who have mental

health disorders (Steel, Chey, Silove et. al., 2009), prevailing is the

PTSD (defined by the World Health Organization in ICD 10 as a “non-

psychotic anxiety disorder resulting from some exceptional threats or

a catastrophic experience that could cause distress for almost all

men”, but there are also others, such as the major depression

(Levecque ș i Van Rossem, 2015), somatic disorders etc.

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Due to the fact that the refugees suffer from a series of severe

traumas (being very frequently victims of torture, witnessing

massacres and / or murder of family members, etc.), their diagnosis

proved to be difficult. For example, there are notable differences in

the results obtained by diagnosing them based on the criteria

included in the DSM IV, compared with DSM V (Schnyder, Muller,

Morina, Schick, Bryant, and Nickerson, 2015) and even while operating

with the “brother” diagnosis of the PTSD, the complex PTSD

(abbreviated CTPSD), which was introduced in ICD 11 just in order to

capture “repeated, prolonged exposure to the traumas caused by the

interpersonal relationships”, being particularly relevant for the groups

of refugees “given their typical exposure to repeated and prolonged

interpersonal trauma” (Nickerson, Liddell, Maccallum, Steel, et.al.,

2014).

The diagnostic difficulties (by default, the standard intervention) are

explained by a variety of factors, starting with the fact that, due to

resettlement, the refugees cannot access the different categories of

resources (labor relations, ways of spending their leisure time, etc.)

used to reduce distress, continuing with the type of traumas suffered

as a result of the events they were exposed to, on the edge of the

human condition (such as, for example, the case described by Rami

Bou Khalil, 2013) or by claiming that refugees come quite often from

countries with a low or medium level of development, where “over

90% of people with mental health disorders are not treated” and “only

13% of the traumatic stress studies are made in these countries”.

(Schnyder, Bryant, Ehlers, Anke, et.al., 2016, p.8). In other words, it is

likely that PTSD was not diagnosed in their home countries and was

not treated, and the refugees suffer other traumatic events on their

way to Europe.

Also, a major difficulty in diagnosing refugees is the fact that PTSD /

CPTSD is diagnosed based on some symptoms that are commonly

reported verbally, while the refugees predominantly come from

cultures where the ability to talk about their traumas is not the rule,

but rather the exception. Therefore, there are frequent the cases with

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“patients who are reluctant to talk with the therapist about their

traumatic experiences, which is a sine qua non in virtually all evidence-

based trauma treatments” (Schnyder, Bryant, Ehlers, Anke, et. al., 2016,

p. 8). Hence, in making the diagnosis there are common situations

where refugees prefer to draw, paint, dance or play an instrument to

invoke the traumatic event, but not to talk about it, even if direct

communication with the therapist is possible (i.e. without a translator).

To diagnose refugees specific tools tailored to their culture have been

developed (such as The Posttraumatic Stress Disorder Interview for

Vietnamese Refugees (PTSD-IVR) – Dao, Poritz, Moody and Szeto,

2012) or standardized instruments were used (such as Harvard Trauma

Questionnaire (HTQ), designed to investigate the refugees affected by

trauma, being validated in multiple languages and cultural contexts

(Sonne, Carlsson, Bech, Vindbjerg et. al., 2016).

The assistance given to refugees in the European countries

While the studies on the incidence of PTSD have been numerous in

recent years, those on the assistance given and their effects are rather

rare, especially regarding the predictors of success of the intervention.

During the last years, it was investigated the influence of several

personal factors on the success of the intervention, among which

some significant negative predictors of the intervention proved to be

the sex: masculine and the villain status in the country of origin.

Regarding the psychosocial factors, employment in their adopted

country is a positive predictor, while dependence on the amounts

received (without generating income) and even a high level of

education (in the home country, usually without an impact in the

country of adoption) can be considered negative predictors of

successful intervention (Sonne, Carlsson, Bech, Vindbjerg et. al., 2016).

Regarding the assistance efforts, they start from the axiom that the

treatment of refugees (especially of those diagnosed with PTSD)

generates a very complex situation, both for the patient and the

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therapist. The vast majority of refugees cannot be subjected to

therapies focused on traumatic events, mainly due to cultural

differences that make difficult to establish and maintain a therapeutic

relationship. Therefore, their assistance refers specifically to

“stabilization, psychosocial and community support... which are not

always sufficient in helping patients effectively”. Typically, the

assistance given to the refugees from the European countries begins

with a “psycho-educational stage”, after which they can make the

connection between the suffered trauma and the current symptoms.

Afterwards, one can proceed to the therapy oriented towards the

traumatic event, in which a genuine sensitivity to the cultural issues

should be incorporated: “We treat people, not disorders. As such,

culture-sensitive psychotraumatology means having a non-critical and

empathetic attitude, trying to understand the cultural basis of each

person” (Schnyder, Bryant, Ehlers, Anke, et. al., 2016, p.9).

136

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THEORETICAL APPROACHES TO SOCIAL IDENTITIES

Patrícia Kaplánová27

Faculty of Organisation studies in Novo mesto, Slovenia

pata.kaplanova@gmail.com

Introduction

A perception of self in modern societies has been a topic of research

of social and psychological science for many years. With the ongoing

development of societies and technological progress, where an

individual has become „globalised“ at least in the virtual world, the

identity of self in society is also evolving. In new conditions of our lives

virtually or physically, our identity and its development are never

ending process. The image of self in society contrasts with

a perception of society on us. Ones of our societal identities of which

we are aware are our social identities like age, gender, socioeconomic

status, ethnic/cultural identity, political identity, or/and national

identity. The strongest identities valid for social and political research

are civic, political and national identities. In following pages a reader

can find many different theoretical approaches to social identities,

especially civic, political and national one. The paper discusses the

categorization of self in the society from a sociological, political and

psychological understanding of identities offering a brief overview of

social identity theory, civic, political and national identity research.

Social identity theory

27 Patricia Kaplanova is Ph.D. Candidate at the Faculty of Organisation Studies in Novo mesto, Slovenia, where she is analysing the Model of citizen's participation in the European governance based on social identity theories. Her broad research interest in theories of democracy and European studies lies on several published articles, or/and book chapters presented mainly at international conferences.

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“[I]dentity is never a priori, nor a finished product; it is only ever the

problematic process of access to an image of totality.” (Bhabha 1994: 51)

The word “identity “is presented in contemporary social and

psychological research as a keyword (Howard, 2000, p. 367). As an

individual, we are sharing several types of identities present in our

personal and social life. According to them, we identify ourselves and

classify to the roles and models in the society. From the perspective of

social interaction, our personal identities influence our behaviour

towards other people and could even create the behaviour of the

whole group where we belong to. The examples of identities which we

can daily observe are based on age, gender, ethnicity, nation, political

views, social status, occupation, etc.

In the past, when societies were rather stable, the term of identity in

psychological science was connected to self-efficacy and self-

verification (Stets, & Burke, 2000, p. 224) as a related issue of personal

estimation and identification of self. This approach is known as an

identity theory which seeks to explain multiple self/personal identities,

their development through the time, how they interact with each

other, and how they affect the human behaviour (for more see

Stryker,& Burke, 2000, pp. 287-285). The identity theory and research

were based on the ego psychoanalytic theory of E.H. Erikson (1950)

and currently developed by Jane Kroger (2007) (for more see Kroger, &

Macia, 2011, p. 32). Gradually, the "identity has become the watchword

of the times" Shotter (1993, p. 188) in social and behavioural science

and the self-reflection is seen in a broad social and political context.

As Cooley (1902) pointed out the individual and society are two sides

of the same coin, thus the identity refers to „the set of meanings that

define who one is when one is an occupant of a particular role in

society, a member of a particular group, or claims particular

characteristics that identify him or her as a unique person.“ (Burke, &

Stets, 2009, p. 3) The personal self-efficacy and self-verification were

later in behavioural sciences supplemented by cognitive processes like

categorization, class, group identity, depersonalization or self-esteem.

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In comparison with the identity theory, the social identity theory (SIT)

is based on a cognitive recognition of self in a wide societal structure.

“Identifying ourselves, or others, is a matter of meaning, and meaning

always involves interaction: agreement and disagreement, convention

and innovation, communication and negotiation“ (Jenkins, 2008, p.

17). In the contrast with the development from personal to social

identity, there are still some scientists who claim that all human

identities are social identities. Adding the word „social“ into this

ambience is somewhat redundant (Ashton et al. 2004, p. 81).

Nevertheless, the social identity has evolved into the popular and one

of the most researchable topics in social sciences explaining the basic

group/collective conflicts.

The social identity theory was first described by Tajfel (1978) as a

social-psychological theory explaining group processes and behaviour

(Trepte, 2013, p. 256). In comparison with other social and

psychological theories, the social identity theory directly addresses

social group behaviour and feelings of belonging to the group.

Consequently, Tajfel (1979) structures “the definition of a group

alongside a cognitive component (knowing about the group

membership), an evaluative component (positive or negative

evaluation of group membership) and an emotional component

(positive or negative emotions associated with the group membership

and its evaluation)” (Trepte, 2013, p. 256). Based on these

understandings Tajfel underlined four principles of social identity

theory: social categorization, social comparison, social identity and

self-esteem.

The social categorization principle, firstly developed as the self-

categorization theory (SCT) by Turner (1987), suggests that personal

and social identity represent different levels of self-categorization

(Trepte, 2013, p. 257). According to Hornsey (2008) „...it is almost

impossible to think or write about group processes and intergroup

relations today without reflecting on core constructs within the theory,

such as categorization, identity, status, and legitimacy.“ (p. 217)

Generally, it could be said that social categorization helps the

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individual to categorise himself to the particular social group and

“create and define the individual’s place in society” (Tajfel and Turner

in Trepte, 2013, p. 257). Based on social or group categorization, the

social psychology research is dealing with stereotypes, class

classification, and interclass differences. Additionally, social

categorization helps to identify the social interactions embedded in

group behaviour. Generally, the social identity theory and self-

categorization theory “capture the socially embedded, situated,

shared, social, group-located properties of human being (Turner, &

Reynolds, 2011, p. 400). Because an individual shares several multiple

group/collective identities, the social identity theory adds that “the

group membership has to be salient to initiate behaviour” (Trepte,

2013, p. 258). Among one’s multiple identities, there are some which

are more salient than the others. With the respect of the social

categorization, if the boundaries between social identities are

significant enough, the salience occurs. The social categorization and

saliency of each identity are influenced by current emotional or value

significance to a person. Simple, how much importance is given to the

group membership by a person, more salient will be that social

categorization. Even there is a lack of research how the existing

salience may affect a social interaction (McLeish,& Oxoby, 2011, p.

173), the past research has shown that the group identity can have an

effect on cooperation (Goette, Huffman, & Meier, 2006), reciprocity

(McLeish,& Oxoby, 2007, p. 1) and negotiations (Kramer, Pommerenke,

& Newton,1993, p. 633).

The second principle of social identity theory, a social comparison, is a

type of behaviour triggered by the social categorization. The social

comparison draws upon the assumption that members of particular

group categorise themselves as members in comparison with other

groups. This concept is based on Fastinger’s (1954) theory of social

comparison which assumes that “we have a need to compare our

opinions and abilities with others, particularly if there are no objective

standards that we can refer to” (Trepte, 2013, p. 258). There are three

basic premises of social comparison theory based on the Fastingers

social comparison theory. The first is that the individuals have to

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adopt the group belonging as a part of their self-concept.

“Comparisons might cause a change in one's opinion or ability, and

most likely this change goes in the direction of uniformity (i.e.,

assimilation)“ (Corcoran, Crusius, & Mussweiler, 2011, p. 121). The

second premise is that the situation needs to be appropriate for a

comparison. “The need to know the self combined with the

impossibility to determine opinions or abilities by reference to the

physical world in many situations motivates people to compare

themselves to other people.“ (Corcoran, Crusius, & Mussweiler, 2011, p.

121) And the third, that the out-group must be relevant in terms of

similarity. Fastinger argues that people will “seek out similar others for

comparisons, or, in the case of abilities, others who are slightly better”

(Corcoran, Crusius, & Mussweiler, 2011, p. 121). Based on what has

mentioned above, the understanding of self as a part of group or

community has also the impact on the behaviour of social comparison.

The personal feeling of belonging to social group, therefore, triggers

the awareness of being different than the members of other social

groups.

Consequently, there is the third principle of SIT, a social identity, which

derives from the understanding of self as a part of a social group

“together with value and emotional significance attached to that

membership” (Tajfel in Trepte, 2013, p. 259). The awareness of

membership identity in a social group is described as „positive group

distinctiveness” (Spears, p. 204-205). In theory, the positive

identification with the social group is called as minimal group

paradigm (Gaertner, & Insko, 2000, p. 77; Spears, 2011, p. 204; Otten,

2016, p. 85) which shows that „mere categorization of people into an

ingroup (‘us’) and an outgroup (‘them’) is sufficient to elicit attempts

to positively differentiate the in-group from the out-group along

available dimensions” (Ford & Tonander, 1998, p. 373). Minimal group

paradigm is considered to be the most influential paradigm to explore

the positive and negative social identity on behalf of social

categorization. Originally, the positive distinctiveness of intergroup

behaviour can explain a likelihood in the intergroup formation and

a hate towards the out-group formations. Relatedly, people

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differentiate the others because of their self-identification within the

group. Turner’s social identity theory conducts the hypothesis that “to

achieve positive social identity, ingroup-outgroup comparisons must

yield perceived differences which favour the ingroup” (1978, p. 236).

The social identity building thus begins with the group self-

categorization and differentiation against the out-groups. This

concept finds itself popular also among scholars of nationalism,

ethnicity, political science or anthropology. The positive differentiation

corresponds to understandings of collective identity, known as two

modes of group identification in social anthropology. „We and Us“

paradigm developed by T.H. Eriksen (1995, 2010) relies on the ethnic

distinctiveness of cultural identities. For the purpose of this thesis, the

topic of “we and them” identification will be discussed later in

autonomous sub-chapter about ethnic and national identities.

The fourth principle of social identity theory is based on a self-esteem

hypothesis (Abrams, & Hogg, 1988, p. 317). Social identity theory

refers to self-esteem as the motivation underlying inter-group

behaviour to confirm their own self-identification or self-enhancement

(Tajfel in Trepte, 2013, p. 259). The self-esteem hypothesis deals with

the motivating force of individual for the positive value associated

with one’s group identity (Spears, 2011, p. 203). On the other hand,

there is also a negative orientation towards the self-evaluation which

models an attitude of approval or disapproval (Brown, 2014, p. 28).

High level of self-esteem is characterised by positive attitudes and

feelings of people towards themselves, while a low self-esteem

regards to negative beliefs about self (Fennell, 2005, p. 236). Based on

this theory, we can assume that the positive feeling about self-drives a

person to the appreciation of self in the society or at least shape

unambiguous attitudes. Consequently, the feeling of importance (high

self-esteem) can even form its motivation to participate. If there is a

high self-esteem, there is a chance that the person would self-evaluate

itself to a positive belief that his/her voice could be heard. Reversely,

there are two basic motivations which “drive people’s attitudes,

behaviour, and perception: a motivation to obtain a clear picture of

one’s position in the social structure; and a motivation to obtain or

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maintain a positive sense of self-esteem” (Abrams & Hogg in Licata et

al., 2011, p. 900). On the contrary, the low self-esteem has a negative

impact on motivation and behaviour. The low self-esteem can

discourage a person from the motivation to participate or generate

unfavourable/ambivalent attitudes.

In this manner, the positive self-categorization as a cognitive

characteristic and the self-esteem as a motivational characteristic

shape the processes of creation a social identity. Based on this

assumption, there are two analogies (Abrams, & Hogg, 1988, pp. 320-

322). The first is that successful inter-group discrimination leads to

increased self-esteem; second, that low or threatened self-esteem

motivates increased out-group discrimination (Trepte, 2013, p. 259).

Besides the four main premises of social identity theory, there is

a paradigm which draws upon the writings about the specific

relationship between individuals and society called as a structural

symbolic interactionism (for more see Stryker, 2002; Handberg et al.,

2015, p. 1024; Carter, & Fuller, 2016, pp. 3-7). The symbolic

interactionism theory28

develops a positivist thesis of micro-level

processes of social interactions which affect a function of the whole

society. The symbolic interactionism, influenced by American

pragmatism, was founded predominantly by a social psychologist G.H.

Mead in early 60s. His scholar, H. Blumer pointed out three basic

premises of symbolic interactionism. “Firstly, human beings act

towards things on the basis of the meanings that the things have for

them. Secondly, the meaning of such things is derived from or arises

out of, the social interaction that one has with one’s fellows. Thirdly,

these meanings are handled in and modified through, an interpretive

process used by the person in dealing with the things he encounters“

(1969, p. 2). The human behaviour is then influenced by meanings

which we are prescribing to things or other people (creating

28 Theory of symbolic interactionism was developed along three main areas of research

and schools following the works of Herbert Blumer (the Chicago School), Manford Kuhn (the Iowa School), and Sheldon Stryker (the Indiana School) (Carter,& Fuller, 2016, p. 2-8).

145

stereotypes for example). These meanings are created by social

interactions, for example, a role of a “mother” is perceived by the

interactions with children, husband, her behaviour towards household,

or etc. A character of those meanings (of a mother) is modified by a

creative process in time and space.

Therefore, the human beings cannot be understood in a manner of

“self” out of the whole society. Because “self” is created in the constant

social interactions (mainly through language and communication) with

others, the human being is constantly influenced by the ongoing

process of change. Therefore, “...the ‘self’ is a product of social

interaction, developed and refined through an on-going process of

participation in society. (Jeon, 2004, p. 250). Consequently, the theory

was influenced by Parson’s structural functionalism (Carter, & Fuller,

2016, p. 2), but on contrary, the symbolic interactionism examines the

bottom-up processes of creating an operation of society.

Straightforwardly, symbolic interactionism analyses how personal

interactions among individuals influence the function of society and

not vice versa. Theory of symbolic interactionism was developed along

three main areas of research and schools following the works of

Herbert Blumer (the Chicago School), Manford Kuhn (the Iowa School),

and Sheldon Stryker (the Indiana School) (Carter,& Fuller, 2016, p. 2-8).

The theory of symbolic interactionism sees the changes of society not

based on the impact of social structures and macro-level institutions,

but as subjective meanings and viewpoints of individuals in the

society. Therefore, patterns of behaviour of individuals and their

identities at micro-level would have an effect on the whole social

system.

Civic and Political identity

Civic identity is the heart of common notions of citizenship and civic

participation (Hart, Richardson, & Wilkenfeld, 2011, p.771). Whereas

the occupational identity defines the perception of socioeconomic

status in the society, the civic identity figures one’s place in the society

as a civic/political actor. The basic understanding of civic identity lies

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on the self-esteem in the development of a civic society which can

empower political engagement and motivates for civic behaviour. The

subjective dimension of citizenship (Carens, 2000, p. 166), a feeling of

belonging, could also strengthen the political collective identity

(Leydet, 2014). With this respect, the civic identity, as well as

citizenship, constitutes three main elements: membership (belonging),

participation and rights which are mutually reinforcing (Bellamy, 2008,

p. 599). Membership explains a feeling of belonging to a community

or nation. Citizens are entitled to civic, political and social rights based

on which they participate in society. Referring to democratic order, a

democracy is functioning based on how citizens feel their

identification with society. The social interactions among citizens and

with society itself strengthen the importance of involvement in

shaping the social life.

Because of the identification of self as a participant in the civil society,

the participation overlaps the characteristic of citizenship and civic

identity tends to be connected to voting, political engagement,

running for the public positions, or to mobilise self and others. The

same as in the theory of citizenship, the feeling of belonging or duty

to participate in the civic life is not burdened by territory, even the

strongest link between citizen and society could be found at the local

level in local communities (Leydet in Hart, Richardson, & Wilkenfeld,

2011, p.773). In comparison with the national identity, an individual

does not need to possess both national and civic identity. For

example, Slovenian living in Great Britain can still feel Slovenian

(national identity) and he/she does not need to feel civic identity in a

country where he/she is living.

Among subjective/psychological influences of civic identity is trust as

a cornerstone of citizenship and interactions among people. Mutual

trust according to some scientists lies even at the heart of all political

processes (Dunn, 1993, p. 641) and mutuality, reciprocity and trust are

associated with social participation and engagement in communities

(Van Deth, Montero, & Westholm, 2007, p. 35). Further, the civic

knowledge as awareness of democratic principles is also perceived as

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a personal factor associated with participation and respect for rights

(Galston in Hart, Richardson, & Wilkenfeld, 2011, p. 778).

Although the subjective factors are determining the civic identity,

there are also demographic influences on civic identity (Hart,

Richardson, & Wilkenfeld, 2011). The first is an economic performance

of the government which creates the economic conditions for social

development. Directly or indirectly, the economic development

influences a level of citizenship and civic identity. It is assumed that

especially in conditions like poverty, low quality of life, the level of the

welfare state, or bad citizen’s well-being make a creation if civic

identity and citizenship more difficult. The second demographic

characteristic is an ethnic heterogenity which proclaims that ethnically

heterogenous countries have more problem to create social capital

(Coffé, 2009, p. 155). Putnam (2007) examined the ethnic heterogenity

with social capital concluding that ethnic diversity tends to breakdown

social capital like trust in local governments, active participation in

local community projects, donating to charity, volunteering and

having close friends (p. 150) On the other hand, the recent study of

diversity in social capital has proved the Putnam hypothesis false

accomplishing that “the economic inequality and national history of

continuous democracy in European societies turn out to be more

important for explaining cross-national differences in social capital in

Europe” (Gesthuizen, Van der Meer, & Scheepers, 2009, p. 121).

However, the ethnic diversity appeared to be negatively influential just

in the link with political participation (Levels, Scheepers, Huijts, &

Kraaykamp, 2015, p. 766).

National identity

With ethnic and cultural identity is mutually connected also a concept

of national identity. The main trends in social behaviour based on

cultural and ethnic identities are also observed in the case of national

identity. The term national identity is close to the concept of

nationalism, which is a process of forming and maintaining nations or

nation-states (Beiner, 1999, p. 56; Smith, 1991, p. 71). This process

148

could be primordialism based on the traditions and culture inherited

in the collective identity, or it can be perceived as a language of

symbolism of the nation, a consciousness of belonging to the nation,

an ideology, a social and political movement to achieve goals of the

nation (Smith, 1991, p. 72). In modernity perspective, the image of a

nation is a nationalism that creates national identity understood by

words of Ernst Gellner that “Nationalism is not the awakening of

nations to self-consciousness: it invents nations where they do not

exist.“ (Eriksen, 2010, p. 117; Smith, 1991, p. 71). From this perspective,

nationalism is connected to a modern understanding of state because

helps to „make sense of common identity to conceive of shaping their

world together within the multi-layered political and social mosaic of

democracy“ (Miller, 1989, p. 184, Keane, 1995, p. 187). As it could be

noted, the national identity and nationalism (as a political force) can

not be clearly separated. Respectively, some scholars differ

nationalism to its cultural or political notions. The political nationalism

refers to a narrative of a self-determination of national identity which

brings also „the principle that citizens should govern themselves, with

the principle that nations should determine their own destiny“ (Keane,

1995, p. 185). The cultural nationalism, by contrast, refers to a doctrine

that an important responsibility of the state is to „preserve and

promote some national culture that is contained within its borders“

(Patten, 1999, p. 1).

The political aspect of nationalism is thus also a force of identification

of nation based on the ethnic and national identity. Benedict Anderson

in his famous book „Imagined communities“ proposed a definition of

a nation as „an imagined political community – and imagined as both

inherently limited and sovereign.“ (2006, p. 6) Unlike Gellner’s

understanding of nationalism as a political force, Anderson is

concerned about cultural roots of nationalism such as identity. The link

between ethnic/cultural identity and nationalism as a political

ideology becomes clear when the political organisation represents the

interests of a particular ethnic group (Eriksen, 2010, p. 121).

Even there could be an assumption that there is a mutual relationship

149

between democracy and nationalism, the principles on which both

concepts are standing differ. While liberal democracy emphasises an

inclusion of people incorporating them into the political and social

system, at the same time „nationalism drew a boundary between us

and them demanding the exclusion of others.“ (Machin, 2015, p. 127)

Thus, nationalism can be based on the negative identity of exclusion

(the others) while the culture of political liberalism in democracies is

based on the inclusion of masses into the political system (an above-

mentioned spread of citizens rights towards participation, etc.). At this

moment, pops up a „clash“ of multiculturalism in modern societies

already mentioned above. The modern societies can not be described

culturally homogenous because of globalisation, migration and the

„melting pot“ processes of the policy of multiculturalism are part of

current debates over immigration crisis in Europe. In the broader

understanding of cultures, ethnic identities and nationalism in

geopolitics there is a tradition of Huntington’s thesis of „a clash of

civilisations“ based on conflicts of cultural identities (1993, p. 22).

Concerning the nationalism and national identity besides that

political nationalism is forced by ethnic and cultural identities, how to

tie the political participation and national identity? As was indicated in

the case of multiculturalism, the national identities rise up in cultural

or ethnic conflicts. The political ideology perspective of nationalism

maintained by political discourse can be thus interpreted as one of the

main social cleavages in modern societies. According to the cleavage

theory of Stein Rokkan and Martin Lipset, the national revolution

processes in Europe (understood as a rise of nationalism) has

produced two main social conflicts: „the conflict between the central

nation-building culture and the increasing resistance of the ethnically,

linguistically, or religiously distinct subject populations in the

provinces and the peripheries ; the conflict between the centralizing,

standardizing, and mobilizing Nation-State and the historically

established corporate privileges of the Church“ (Lipset, & Rokkan,

1967, p. 14). These cleavages built up since the rise of nationalism

movements of the eighteenth and nineteenth century are present in

contemporary societies with new socio-structural conditions and are

strengthen by gradual and ongoing ethnical, cultural and national

150

conflicts. why we can see the strengthening process could be

described by the thesis that nationalism is connected to modernity

and supported by the industrial revolution. By work of Miroslav Hroch

„Social Preconditions of National Revival in Europe“, there are socio-

economic characteristics of modernity which reinforce nationalism like

a growth of education, and powerful economic relations (1985, pp. 5-

7). This type of nationalism reinforced by education and economic

development is classified as a liberal nationalism which „emphasises

rather civic engagement in democratic regime than the ethnicity“

(Hall, 1995, p. 156).

If the modernity, industrialisation also reinforced the nationalist

feelings, we can assume that the human development in the twenty-

first century could have the same impact. At least we can claim that

the building of national identities is not necessarily disconnected from

the modern understanding of democratic political regimes. In the case

of supranational integration and globalisation, there is an assumption

that the national identities either disappear of get weaker. Referring to

the European integration, the logic could be assumed the same, that

the Europeanization of identities would have a negative effect on

national identities. However, the empirical findings suggest that the

stronger feelings of national identity lead to lower level of support for

the European integration (Carey, 2002, p. 387).

Conclusion and Discussion

For current research in sociological and political science, there is a

wide range of studies dealing with identities. A place of individual in

society and its understanding has triggered several approaches

among which the most important are theories of social identity.

Consequently, the categorization of self in socio-structural conditions

is influenced by several processes of comunity building. Symbolic

interactionism emphesized by a creation of stereotypes has

determined individual identity especially in political communities.

Civic and political identity is supported by processes of creation of

151

citizenship as forms of belonging and membership. These kinds of

collective identities are enforced in current democratic regimes as well

as in any forms of democracies in the past. Although, a national

identity based on ethnic or cultural identity, could be perceived as a

feeling of belonging to political unit. The difference between a feeling

and being of belonging and membership has been and will the main

aim of social research since a new wave of extreme right-wing politics

has appeared in Europe. The theoretical basis which was developed in

this chapter is a first step in theoretical framework for further research

in sociology or political science.

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Index

A

Alberelli, 82 anxiety, 131 Aristovnik, 50, 65, 66 asbestos plant, 72 assistance effort, 133 asymmetry, 5, 31, 35, 43, 44, 45, 58

B

Balkan route, 8, 130 Barro, 50, 51, 66 Benadusi, 75, 82, 83 Big data, 44 Bleich, 129, 134 Boomgaarden, 129, 134 Bosnia-Herzegovina, 130, 135 Buček, 87, 102 Bufon, 117, 128 Burns, 128 Burns, Nancy, 128 Bush, 44, 46

C

Castel, 81, 83 chronic underemployment, 78 citizens, 113, 145, 147, 148 citizenship, 144, 145, 146, 150 civic identity, 144, 145, 146 civil law, 5, 31 clientelization, 81 clusters, 92, 93, 94, 95, 96, 97, 98,

99, 101, 102 cohesion policy, 86, 87, 107, 117,

118, 120 competitiveness, 87, 100, 114, 122 consumer, 5, 6, 31, 32, 33, 34, 35,

36, 37, 38, 39, 40, 41, 42, 43, 45,

51 consumers, 5, 35, 39, 41, 42, 44, 45,

46 creative regions, 123 Czech republic, 97

D

data collection, 11, 22, 26, 65 de lege ferenda, 33, 43 Della Porta, 128 development, 1, 2, 4, 5, 7, 9, 16, 22,

25, 30, 51, 65, 72, 76, 77, 81, 82, 85, 87, 88, 90, 94, 99, 100, 101, 103, 106, 107, 108, 109, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 127, 132, 137, 138, 145, 146, 149, 152

developmental diversity, 109, 127 Directive on Consumers Rights, 34 distress, 131, 132 double-barreled question, 13, 17,

23

E

earthquake, 72, 73, 74, 75, 76, 77, 79 economic competitiveness, 122,

123 economic crisis, 4, 5, 99, 107, 109,

125 economic development, 4, 7, 87,

88, 89, 90, 96, 101, 102, 107, 110, 125, 146, 149

economic indicators, 88, 90, 102, 103

economic inequality, 146 education, 4, 5, 6, 25, 26, 27, 48, 49,

50, 51, 52, 53, 56, 59, 62, 63, 65, 66, 67, 69, 111, 133, 149

educational attainment, 50

157

efficiency, 44, 46, 48, 50, 53, 62, 65, 87, 89, 118, 119, 122, 123, 127

environmental responsibility, 123 Eppler, 39, 46 Eriksen, 142, 147, 151 EU funds, 107, 116, 120 Europe, 3, 8, 50, 66, 69, 80, 85, 103,

121, 131, 132, 135, 146, 148, 150, 151, 152, 153

European Commission, 39, 51, 66, 86, 87, 88, 102, 103

F

Fabris, 49, 62, 66 failed urbanization, 72 Fassin, 75, 84 financial education, 6, 48, 50, 51,

64, 65, 69 financial knowledge, 6, 51, 57, 61,

62, 63, 64 financial literacy, 5, 6, 48, 49, 50, 52,

54, 56, 57, 58, 59, 60, 61, 63, 64, 67, 69

Foxall, 38, 46

G

Gay, 14, 15, 16, 26 GDP per capita, 50, 52, 53, 102, 113,

115 gender, 4, 6, 29, 52, 53, 60, 62, 63,

65, 137, 138 Giroux, 75, 84 globalisation, 148, 149 Gorzelak, 88, 103 Grochowski, 36, 46 Guttman coefficient, 25

H

Hakanson, 130, 131 Hart, 144, 145, 146, 152 Hobsbawm, 80, 84 homo oeconomicus, 37, 38 Hoyer, 38, 46

Hroch, 149, 152 human capability, 5, 31 Hungary, 5, 10, 26, 94, 100 Huntington, 148, 152

I

implementation, 7, 44, 48, 51, 72, 73, 101, 107, 114, 115, 117, 118, 119, 120, 125, 127

information duties, 5, 31, 32, 33, 34, 35, 38, 46

information overload, 5, 32, 38, 39, 43, 46

information society, 5 in-group, 141 innovation, 87, 90, 100, 103, 114,

139 interdisciplinary approach, 33, 46 Irpinia, 72, 73, 76, 78, 81 Isochimica, 3, 6, 71, 73, 74, 76, 78,

79, 80, 81, 83, 84

J

Johnson, 12, 13, 19, 20, 24, 26 Joppe, 18, 26 Jorgensen, 51, 67

K

Klapper, 52, 67 Klein, 72, 84 Kramer, 140, 152 Kržičnik, E., 128

L

Likert, 10, 17, 24, 27 Lipset, 148, 153 Lusardi, 53, 56, 63, 66, 67, 68 Luzak, 41, 45, 47

M

Machin, 148, 153

158

management, 5, 8, 17, 22, 23, 25, 48, 49, 51, 72, 73, 74, 77, 81, 121, 123

Martin, 24, 27, 148 mental health disorder, 130, 131,

132 methodological pitfall, 76

N

Nano, 52, 68 national identity, 137, 145, 146,

147, 148, 149, 150, 151 nationalism, 142, 146, 147, 148, 150,

151, 152, 153 network, 112, 121, 124 new organizational hegemony, 82 Norway, 130

O

OECD, 52, 53, 63, 65, 66, 69, 128 Oppenheim, 10, 24, 27 opt-in mechanism, 45 Otten, 141, 153 out-group, 129, 141, 143

P

paradigmatic case study, 6, 72, 73 parental education, 51 participation, 107, 120, 137, 144,

145, 146, 148, 150 patients, 133, 134 patronage, 73, 79, 80, 81, 124 Peng, 51, 69 personal data protection, 44 personalization, 44, 46 piloting, 14, 25 PISA, 52, 53, 56, 57, 66, 67, 68, 69 planning, 24, 27, 51, 54, 118, 119,

120, 121, 127 Poland, 5, 31, 53, 123 policy responsibility, 51 Porat, 44, 47 posttraumatic stress, 130, 135

posttraumatic stress disorder, 130, 135, 136

pre-contractual information, 33, 37, 38, 40, 42, 43, 46

pre-contractual obligations, 32, 45 Principal European Economic

Indicators, 88, 102 prospect theory, 55 psycho-educational stage, 134

Q

quality life, 49 questionnaire, 11, 12, 13, 17, 18, 21,

24, 25, 27, 55, 58, 61, 65

R

refugee crisis, 129 refugees, 8, 129, 130, 131, 132, 133,

135, 136 Regional Development Agency,

119, 122 regional disparities, 48, 86, 87, 127 regional incentives, 107 regional policy, 7, 86, 87, 107, 114,

115, 116, 117, 118, 119, 120, 122, 123, 127

regionalizacija, 128 regionalization, 127 regionalni razvoj, 115, 128 Regionalni razvoj, 128 reliability, 5, 11, 15, 18, 20, 21, 22,

23, 25, 26 renewed systemic conditions, 107 Rokkan, 148, 153 Romania, 8, 66, 130

S

Sagarin, 40, 47 Saitta, 75, 85 Samson, 90, 103 scratching asbestos, 81 self-esteem, 139, 142, 143, 145, 151 self-perception, 55, 56, 57, 60, 62,

159

63, 64 skladen regionalni razvoj, 128 Slovakia, 3, 6, 7, 52, 54, 56, 63, 64,

65, 86, 93 Slovenia, 3, 7, 8, 65, 106, 107, 109,

110, 111, 112, 113, 114, 115, 123, 125, 126, 127, 128, 137

small-scale study, 21 Smith, 75, 84, 147, 153 social capital, 122, 123, 146, 151 social categorization, 139, 140, 141,

153 social identity, 137, 139, 140, 141,

142, 143, 149, 150, 151, 152, 153 social interaction, 138, 140, 143,

144, 145 somatic disorder, 131 Soukkhavong, 14, 27 Southeast Asia, 130 Spears, 141, 142, 153 SPSS, 22, 27, 93, 94 Stankovičová, 92, 103 status, 32, 40, 43, 49, 52, 62, 65, 73,

117, 118, 119, 124, 127, 133, 137, 138, 139, 144, 150

Steel, 130, 131, 132, 135 Stets, 138, 150, 153 Stryker, 138, 143, 144, 154 subaltern people, 75 sub-scale, 5, 10, 16, 17, 21, 22, 23,

24, 29, 30 SVLR, 128 Sweden, 123, 131 symbolic interactionism, 143, 144,

151, 152

T

teacher management, 22, 23, 29 technological society, 5 technology development, 5 terminology, 11, 23, 27 test scores, 25 Thulesius, 130, 131, 135 trauma, 8, 130, 131, 132, 133, 134,

135, 136 traumatic event, 132, 133, 134, 135 Trunk, 49, 51, 69 tsunami, 72 Turner, 139, 140, 142, 154

U

unemployment rate, 100, 107, 108 university students, 6, 62, 64 Uredba, 128 USA, 46, 131

V

validity, 5, 11, 15, 16, 21, 22, 25, 26, 27, 29, 61, 62

Visegrad Group, 100, 103

W

Warwick, 10, 24, 28 Wilkinson, 12, 28 Williams, 49, 70 Wilson, 37, 47 wording, 5, 11, 13, 14, 16, 21, 22, 23,

24, 25, 45